Capital gains tax question

[Angie Bart]

Hello! I am receiving conflicting information and am hoping someone here may have insight:

I bought a home in 2000 for 133K. In 2010 I moved and rented the home out. I am now putting the house up for sale.

1) When talking with new tax preparer (too many mistakes with previous preparer) he reviewed prior tax records and stated the following:

  On my previous taxes the preparer listed the value of the home in 2010 as 95K. They steeply depreciated it each year on taxes and included home repair deductions. He stated if the home now sells for 180K I will be charged capital gains taxes on 85K (180-95) which would end up 10K in taxes. He said there may be a way to spread it out to get this lowered to around 7K.

2) My realtor said there shouldn't be any capital gains taxes as I paid 133 and sell for 180 ; take out closing costs, realtor fees and all home repairs would drop this way down but shouldn't be any CAPITAL gains taxes at all.

3) Then I have also read online another viewpoint: That I take sale price of 180 minus the 133 originally paid=47K I spread that out over 17 years= $2,760/yr. Then I only consider the 7 years I rented the house so capital gains should only be paid on 19,320? If this scenario is correct, where would I deduct home improvement costs? From the total 47K or only on the time the home was rented?

Thank you in advance for any help!!!