Right, I haven’t claimed depreciation thus far.My parents are still alive so I guess it would be considered a gift and if I’ve read correctly, their cost basis gets transferred to me except we have no idea what exactly that is.

I am assuming you think you own it free and clear correct.. 

Cash on Cash is about 5.5-6% if my math is correct. about a 6% cap rate.

@Manuel NaranjoThe other posters are correct - it is section 121.I think your accountant is having an issue because he is unsure of how to tell the software to exclude the gain on the return.The sale still needs to be reported on the return. 

@Christopher Phillips That’s correct.

I do mostly fix and flips as well as holding some rentals, but will be getting my license soon for MLS access and looking for the best sponsorship route to go.

IF you go that route, you aren't getting 100% back out, you'll be capped at probably 75-80% of the new appraised value.

Currently learning about acquiring property(ies) outside of Los Angeles and doing the own capital down / light refurb / hired property manager route.

Using correct vacancy rates, tax numbers, and rent projections will allow you to compare deals across markets.

Yeah the house is actually around 560000 But again, this is just if I am running my numbers correct.