Apparently, I nis-read/misinterpreted your original post. Could have sworn you said you rented it out for the last 5 years you owned it, and lived in it 3.5 years before that.
Basically, if your move was a "requirement of employment or continued employment" then you get to pro-rate. Just be aware that the longer you wait to sell, the less of an exclusion you get. Proration is based on a 5-year lookback from the closing date of the sale.
Additionally, since it was a rental you will be paying tax on the recaptured depreciation no matter what. The depreciation recapture is not included as a part of the exclusion.
Since this property will still be classified as a rental when you sell it, you can report the sale in the SCH E section of the program making sure you select the option to indicate "this sale includes my primary residence" so that it will work you through the exclusion process.
