We are in a similar situation. We bought our house in Colorado in June of 2013 for $192,000 and started renting it March of 2015 due to PCS orders. My husband has since retired from the army and we are about to sell the house for $275,000. We just bought our new home (primary residence) in Illinois. We are wondering if we will have to pay taxes on the sale of the rental home in Colorado.
