Are capital gains on sale of just-gifted property long or short term?

I'm thinking about gifting my father a townhome that I held as an investment property for 8 years. After much research, I think I understand the tax consequences, and would like to ask you guys if I missed anything.

1. The cost basis and all the depreciation and carryover losses, as well as property value appreciation go to my father as if he owned the property himself all along. All I owe to the Tax Man is a Gift Tax Return From 709, and since this is the first gift ever and it's way below the $5+mln gift tax threshold, I will owe no taxes. Right or wrong?

2. If my father improves and resells the property in a few months, he will pay long-term capital gains on it, not short-term. Here are the quotes from IRS:

IRS Pub 551:
"...your basis is the donor's adjusted basis at the time you received the gift..."

IRS Pub 544:
"Gift.   If you receive a gift of property and your basis in it is figured using the donor's basis, your holding period includes the donor's holding period. For more information on basis, see Pub. 551, Basis of Assets. "

Right or wrong?

3. Either he or I can convert property from Investment Asset to Second Home and stop depreciating it at the date when the tenant moved out and he moved in. It matters because he'll have to pay 25% depreciation recapture on the $60k of depreciation, and there's no reason to dig deeper into that useless tax hole. Incidentally, the home will be his Primary Residence and he'll be able to claim homestead exemption (saving $70/year.. sigh) from when I give him the deed to the property, too. Right or wrong?