It depends. If you used a Schedule E on prior year returns to report the rental income and expenses, even if rented not for profit, it was limited to the amount of rental income. No amount of deductions over the rental income would have been allowed on a correctly filed tax return. If you actually did depreciated the property and any of the depreciation was used to reduce the income, then that amount would be required to be recaptured and reduce your cost basis.
If you do not rent your property to make a profit, you can deduct your rental expenses only up to the amount of your rental income. You cannot deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year.
If you never depreciated the property due to the intent of not for profit during any and all rents, then there is nothing to recapture when you sell your home.
@SR5060
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