Since the home was your principal residence for more than 2 out of the 5 last years, you may exclude all of the capital gain, up to $250,000 ($500,000 married). However, you will have to pay tax on depreciation "recapture", at ordinary income rates, not capital gains rates. Recapture is required on the depreciation you claimed or should have claimed, while renting it out. You were not required to claim depreciation in the year the house sold.
There is nothing you need to do about income tax at closing. The closing agent may ask you to do a form W-9 and issue you a form 1099-S, but this is routine for any real estate sale.
