Sell Rental Property converted from Primary Residence

[Nick Letourneau]

I am thinking of selling my former primary residence that I converted to a rental property when I moved. I have tried to figure out the capital gains and depreciation recapture with various calculators and by following examples, but I always end up with various unknowns. So I thought I'd turn to the more experienced folks on here for advice.

Here are the facts:

Purchased in 10/2005 for $209,900 (top of the market...hang on to your hats!)

Converted to rental 8/1/2013. When my 2013 taxes were done, value was set at $126,500 ($85,100 for the house, $41,400 for the land).

I have depreciated 3 things:

• Refrigerator: Basis $750. Total depreciation through 12/31/15: $422.
• Plumbing: Basis $1920. Total depreciation through 12/31/15: $172.
• House: Basis $85,100. Total depreciation through 12/31/15: $6,664.

The market analysis my property manager/realtor shows the house could sell for around $170,000, with a 5% realtor fee of $8,500 .

Questions I end up with when trying to figure this out:

• I put in a new furnace when this was my primary residence. Does the cost for this get added to 'improvements' to the property? There was a tax credit for it as well the year it was done. How does that come into play?
• I had the bathroom floor tiled when this was my primary residence. Again, does the cost for this get added to 'improvements' to the property?
• Other improvements were cosmetic: painting, removing carpet. I don't think those get included in any way, correct?
• Since I lived in the house from 7/31/2011-7/31/2013 (actually from 10/2005), does that mean until 7/31/2016 I can say it was my primary residence for "2 of the last 5 years"? How exactly does that affect the calculations?

I'm sure there are some things I'm forgetting or have overlooked, but if anyone can help me figure out the capital gains and depreciation recapture for this, I would greatly appreciate it.

Thank you BP members!