Depreciation Recapture on Rental of Primary Residence

[Jeffery EA]

Taxpayer and Spouse sell their primary residence in 2020 and meet the "Qualified Use" tests to exclude up to $500,000.00 of gain on sale of principle residence (2 of 5 years and ownership tests).
Within the 5 years, Residence had been and was a Rental property reporting on Schedule E Form 1040. Accumulated depreciation of $13,750.00 (roughly), when sold in 2020.
Gain on sale of "Home" was less than $200,000.00, 100% excluded.
Question: Depreciation "may be taxable as recaptured depreciation, ordinary income IF there is a gain on sale of property". Is this depreciation of $13,750.00 reported as "recaptured depreciation" on the Schedule E, treated as ordinary income? There is a gain from the sale of the residence but the gain is excluded for the purposes of Sale of Home. Is the recaptured depreciation also excluded?
Your comments are welcomed!

Jeffery, EA

[TaxGuyBill]

No, the gain based on the depreciation is not excluded.

No, that is not reported on Schedule E. Assuming the personal use was before 2020 and it was a rental in 2020, the "Unrecaptured Section 1250 Gain" should show up on Form 4797 (but some software erroneously puts it on Form 8949). The Unrecaptured Section 1250 Gain (gain based on the depreciation) should show up on Line 19 of Schedule D.

It is technically a capital gain, but it is taxed at the ordinary tax bracket, up to 25%.