To Claim or Not to Claim Depreciation

[Graham Kuzek]

Hello all, looking for some advice or recommendation.  Also my first BP post so here we go.

July 2020 I bought a townhouse in Fredericksburg, VA for $315k. 20% down payment, 2.75% fixed over 30 years. Do the math and mortgage is less than half the rent. A couple monthly fees and the cash flow would be roughly $700-$800 per month before paying income taxes. Since then just like most places, the value has increased to around ~ $375k. I'm relocating in October to Raleigh area and will likely have a tenant in at the start of November. Yes, I will likely not be fulfilling the 2 out 5 year requirement to avoid the capital gains tax when I eventually sell. Since I've only had this property a short period of time, should I claim depreciation to improve the cash flow after tax or refrain from doing it? If I had to guess, my timeline on the property is somewhere between a 5 & 10 year hold.

I have another property in Canada that I do not since I was claiming it as a principle residence for a few years before turning it into a rental and the increase in value while it was a primary residence would eventually be taxed on capital gains if I did deduct depreciation when I go to sell one day.