Decpreciation Recapture and Capital Gains on a primary converted

[Jimmie Dickey]

First, thank you all for taking the time to answer the questions that come up on here. I know some are repetitive. We may be relocating soon and I don't want to be in this rental market from a couple hundred miles away. I'm trying to plan whether I'd be better off selling a rental property now, or waiting a little longer as far as tax calculations go....We've got a lease, but we've also got provisions to get out should we decide to sell. And I know I need an accountant, but I'm going to wait a month or so until tax season dies down...using round numbers for the sake of simplicity, but these are very, very close. Very minimal improvements. 

May 2008: Purchased as primary residence for $155,000 (116,000 house, 39,000 land)

July 1, 2014: Went into service as rental, depreciation begins

Depreciation taken so far: $6,773 and growing by 315.08/month

Market Value today: 160,000 (120,000 house, 40,000 land)

I'm calculating it in a way that makes no logical sense to me. 

So...what would you calculate my basis as given the above info? 

What would be my actual gain?

[Wayne Brooks]

@Joe Splitrock is wrong in his calculation. 

@Jimmie Dickey,  Right now you'd just owe taxes on the depreciation recapture.    As long as you sell prior to it being a rental for 3 years, you get the section 121 primary residence exclusion.  There is little to no gain otherwise, you'd likely sell at a loss, after sales costs.