@Carl,
Quick answer to these questions here:
PCS - 8/27/2010
Never moved back to the area (though that was the intent and reason to keep the property in the first place)
Separated at PCS location - 12/31/2018
Purchased replacement Primary Residence on 8/8/2017 (I did not state this before, but working through Pub 523, I think this is really the relevant date. Even if this is not right, using any other date will give a longer occupancy as primary residence).
Counting back from date of sale using Qualified Extended Duty from 8/27/2010 to 8/8/2017 results in 772 days as primary residence and 1054 in rental status. So, 100% of the gains are allowed under Section 121 excluding the depreciation recapture of $32,377.
Now I just need to figure out how to make T-Tax dance to this tune. The reason I went down this path in the first place is that I did not trust the answer I was getting. I am glad I did not. That you for your solid, example-based analysis of this situation.
Cheers
