For your example (the 500,000 sale), she wouldn't have to pay back the capital gains on the 300,000 because she lived in it the last 2 years, right?
Regardless of how long you lived in the house right before it was sold, you will always have to pay the depreciation recapture back correct?
I understand for high earners the depreciation recapture rate would be 25% but what if the year you sold it you didn't have any income, would the depreciation recapture % be 0%?
