Hal_Al
Level 15

Deductions & credits

@mbison  Yes, you qualify for the home sale exclusion. 

Active-duty military, foreign service, and intelligence community members may be able to use more than five years to live in the home for 24 months. They are allowed to “suspend” the 5 year period. 

 

The fact that you only lived in it 12 months (you actually have to count days) means your maximum exclusion is reduce by 50%.  If you are Married Filing Jointly (MFJ) this means you can exclude up to $250,000.  Note that the military rule is not a "partial exclusion", it's a reduction of the maximum exclusion. 

 

You will have to pay tax on the depreciation recapture portion  of the capital gain. 

 

TurboTax (TT) can handle all this. Follow the interview carefully.  I think it goes smoother if you enter as a home sale, rather than the sale of a rental (TT can handle it either way).