@jbonifacejr , :
(a) whether you take the depreciation ( recognize it on your yearly return ) or not, when you sell the property you have to recognize the accumulated depreciation ( i.e. what should have been recognized each year ).
(b) whereas depreciation up to a safe harbor amount of $25,000 reduces your taxable income ( when some other condition s are met ), it also reduces your basis in the property -- thus increasing your taxable gain.
(c) To be bale to exclude up to $500,000 of gain from disposing of a residence you need to meet :
1. either of the filers must have owned the asset for at least TWO years ;
2. Both must have used the property as main residence for a total of 730 full days
these are to be met with a look back of FIVE years from the date of sale
3. You must not have excluded such gain within the last two years.
I re-iterate these because , if you intend to move and sell your current home and would to exclude the gain from taxation, you need to meet these requirements.
Is there more I can do for you ?
