It may be possible to claim a dependency exemption for a relative living in Mexico. While the niece cannot be a qualifying child because she does not live with you, the niece may be a qualifying relative. As long as she cannot be claimed as someone else’s dependent, then you can claim a dependency exemption (assuming all other dependency exemption requirements are met).
An amount of gain on the sale of certain depreciable property that is treated as ordinary income in the case of personal property. Recapture is computed on Form 4797.