I'm considering selling my house just to get it off my hands, but I fear the depreciation might make it costly to do so. Here's the situation (I'm rounding numbers to make things easier):
1. I bought the house in 2004 for $180,000.
2. I claimed depreciation on a portion for business use of home. However, part of the deduction couldn't be applied and carried over to the next year (and next). It's still carrying over, even though it went out of business use in 2012.
3. Since 2012, I've been renting it out and depreciating it.
4. Due to a foreclosure battle, I ended up modifying the loan with a principal balance of $270,000.
5. I'm looking to sell just to get this "cursed" property off my hands. I'll probably break even. I currently still owe $265,000 and will probably sell for close to that. So, I won't make any profit.

So my questions are:

A. If I sell it, is my basis for determining profit based on the modified amount ($270,000) or the original amount ($180,000)?
B. If I don't actually make money ~now~ am I still having to recapture all the depreciation?
C. If so, would I be selling as a wash, to ultimately incur thousands of dollars in recaptured depreciation, i.e., am I effectively forced to keep the house, so I don't get hit with a huge tax bill?