Aloha,Definitely read and understand the agreement in its entirety.

That is why every lease has to be read in it's entirety including any amendments and updates. 

But if you actually haven't rented the other units and are living in the entirety then you could indeed take the full $500K. 

When you submit your income docs and disclose on your 1003 that you own a business and show all tax returns to the business and that business pays you a salary, your income will not be solely based on the salary income but on the entirety of the business' income or loss regardless of salary. 

My CPA says the capital gain can not be offset by the passive losses because "the passive Activity must be disposed of in its entirety".

Most of my personal assets are owned with my wife as Tenants by the Entireties, but my rentals are only owned by me for greater liability protection. 

There are other potential options too depending on the entirety of your situation.

But again, I haven’t read the entirety of BP because time-poor.

Depending on the size of the asset that I am invested, I rerun the analysis in its entirety biannually or annually.Never one and done your analysis its much more than a decision making tool for your investment, its a vital asset for properly managing and diagnosising your properties throughout the investment horizon.I'm sure @Brian Burke will second that.

The IRS is now allowing all depreciation on the real estate in it's entirety to be deferred in the 1031.