Fred used a portion of his residence, which she bought 15 years ago , for business purposes. He has taken depreciation deduction since he bought the home . When he sells his home in May 2019 , his gain is $150,000, $5,000 of which is attributable to depreciation . Which of the following is true ?

a.). A total of 5000 of his gain does not qualify for the home sale exclusion

B.). The basis in his new home must be reduced by $5,000

c.). The depreciation deductions do not affect his exclusion

D.). The depreciation deductions reduce the maximum exclusion amount