As you have not lived in the home for more than 2 years in the 5 years preceding the sale, you do not qualify for the capital gain exclusion on the sale of your residence. The sale will be treated as sale of a rental home.
Improvements are added to the cost basis of the home, so will reduce your capital gains.
Please follow the instructions of this TurboTax Help topic on how to report the sale of a rental home.
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