I am converting my personal residence to a rental property on Nov 1. As I understand it, as long as I sell the property within 3 years, I will not have to pay capital gains tax (because I lived there 2 of the last 5 years). Will taking depreciation and then having to recapture depreciation when I sell have any effect on taking the tax-free gain?
Is this all correct? Anything else I need to be aware of? Thanks!