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It depends. If you meet the requirements below then you will be allowed a partial exclusion on the home.  Keep in mind that you will pay tax on any gain attributable to the depreciation expense and then a partial gain will be calculated if the gain is higher.

Does Your Home Qualify for a Partial Exclusion of Gain?

If you don't meet the Eligibility Test, you may still qualify for a partial exclusion of gain. You can meet the requirements for a partial exclusion if the main reason for your home sale was a change in workplace location, a health issue, or an unforeseeable event.

Work-Related Move

You meet the requirements for a partial exclusion if any of the following events occurred during your time of ownership and residence in the home.

• You took or were transferred to a new job in a work location at least 50 miles farther from the home than your old work location. For example, your old work location was 15 miles from the home and your new work location is 65 miles from the home.

• You had no previous work location and you began a new job at least 50 miles from the home.

• Either of the above is true of your spouse, a co-owner of the home, or anyone else for whom the home was his or her residence.

Any depreciation allowed or allowable (the 4 years it was rented whether or not you took advantage of the deduction) during the rental period will be recaptured and will be taxable limited to the actual amount of gain on the sale.  

Carefully answer the questions in the asset section of the rental activity.  

1. Answer - No, I have not always used this item 100% of the time for this business.
2. Answer - No, Special Handling Required?
3. Begin to answer the questions about the Home Sale
4. Make sure to answer the 'Reason for Sale' by selecting 'Change in place (more than 50 miles) of employment (see image below)
5. TurboTax will do the rest once this has been completed