You have $200k in equity but you’ll have a taxable LOSS after selling for $1M or even $1.05M. 

What have I missed?  

We have our own portfolio we manage and development projects across northern VA and DC.  

You have 4 bedrooms so that seems like a good size home. 

For quick math I have a range of each between: 700/yr to 3% of gross income

The law doesn't say "you have to be selling". 

What criteria or requirements must be met for this to happen, and what’s the process I need to follow to ensure compliance with the law?

This means that when you sell the property, your adjusted tax basis is lower, which increases the capital gain you must recognize.Additionally, any accelerated depreciation taken is subject to depreciation recapture at a higher tax rate (up to 25% for real estate assets) rather than being taxed as long-term capital gains.So, while cost segregation provides significant upfront tax savings, it also increases your capital gains tax liability upon sale unless you use a 1031 exchange or other tax-deferral strategies.You can find your current tax basis by reviewing your depreciation schedule (Form 4562) and prior years’ tax returns, specifically looking at your adjusted basis on Form 4797 (for sales of business property) or Schedule D (for capital gains and losses).Your CPA should be consulted prior to making any decisions. 

If you don’t have a strong marketing system, it’s a grind.

Additionally I have multiple prospects very close to my existing home that have not been remodeled since construction in the late 1970's.