FLU, FSD is real good at these questions as is Surveyor but yes I believe if the owner did go back to live in the home she would be able to get the cap gains exemption. I “don’t think” she would be able to lose the recap on depreciation though I could be wrong…I don’t think it would be a major problem though. To me, depreciation is like a loan that uncle sam gives to you and comes to take back no matter what…
Even with the recap, she would still be below the 250k so she would be okay…Also I am not sure of the sublet question…
