Avoid capital gains on primary/rental property

[Loren Whitney]

I'm hoping that someone can help me figure out a tax question related to capital gains. This is really a two questions. I've been reading about the exemption from capital gains if you occupy a primary residence for 2 of the last 5 years. I read that the time does not have to be consecutive, right? If I rent a property for 2-3 years but still meet the 2 year rule, what happens to the depreciation I claim during the rental years? Does my cost basis just adjust or do I have to pay taxes on that amount separately upon sale of the property? Just trying to wrap my head around this concept. We're actually six months away from the 2-year mark on our current primary but thinking about turning it into a rental. Just trying to strategize. Thanks!