Thank you for the information.
We lived in the home as our primary residence for almost 3 full years and owned it since it was built. I am sure we meet the three criteria you list.
We paid 1,010,000.00 for the house. We owe around $980,000.
I am wondering if a reduction in basis means that if I take $25,000 in depreciation, that my basis drops to $985,000 and then another year of $25,000 would drop it to $960,000. Is that how it works? If so, I am not worried because even if we take $50,000 in depreciation over the next two years and sell it right at the end of that second year, we will likely only gain around $300,000 to $400,000.
I really appreciate the help. We tried to sell it before we moved back to our first home that was a rental for four years, but the market was just not strong enough.
