Hypothetical scenario

[Ali Sheik]

Suppose one purchased a 4 plex for $400k and took the standard depreciation for 27.5 years deducting $300k for tax purposes. If I am correct then anything sold above $100k ($400k-$300k) is taxable taking into account depreciation recapture. If one decides to reside in one of the units for 2 years prior to selling will the $500k exclusion take place and gains taxation would only be imposed on a selling price of $600k or higher? Thanks