Rental conversion to primary and PAL carryforward

[BHoffman]

I have a client who is thinking of moving back into their rental property.  

They have about $50,000 in carry forward PAL.  

They have about $58,000 in accumulated depreciation.

I understand that if they live in the house for 2/5 years and then sell, some or all of the gain can be excluded via Sec 121 (they might have a home office).   I believe the entire PAL is used in the year of sale, and the entire depreciation is recaptured.  Correct?  

Thanks!

 

[jklcpa]

Remember to also factor in the period of nonqualified use when calculating the gain eligible for exclusion under sec 121.