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Try IRS Publications 527 and 544, they deal with your questions. I'm not shure about the recapture since you haven't sold anything, but the rest seems correct.

If you sell in two years it's half personal and half business. If you're in it two years, you get the exemption for sale of a personal residence. If you rent the unit you were in you start depreciating on the then current FMV.
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