Simple answer: If you sell the NY home within three years of the move out date,* you can exclude the capital gain (up to $500K for married couples). However, you must pay tax on the depreciation you claimed (or should have claimed) while it was a rental. Depreciation "recapture" is taxed as ordinary income, but no more than 25%.
*You must meet the owned and lived in 2 out of the last 5 years rule. Selling within 3 years insures you meet that. There are exceptions to the 2/5 rule if your move was work related or other "unforeseen circumstances" See Pub 523
