Hello. We are about to sell our primary residence that we had to rent for 4 years when we were stationed overseas. We depreciated it for those four years, but then came back and lived in it for another four before selling it. What we're trying to figure out is how much we have to payback to the government in depreciation recapture - is it the full amount of 18500 or is there some kind of break? Also, do we pay the recapture back when we sell or when we file our 2012 taxes?

Thanks for your help.