Good Morning,
I am active duty military and have a rental property that was at one point my primary home. I lived in the home from 2009 to 2015. In July 2015 I moved out of the area (Hampton Roads VA) on official military orders and rented the house. In July 2018 I moved back to the area (Hampton Roads VA) but continued to rent the house. I am now selling the property with a closing date in July 2021. During the entire time I rented the property I claimed depreciation. I know that in the sale of a rental property you are exempt from capital gains taxes if you lived in it for 2 of the past 5 years as your primary residence and that military members who are on qualified official orders may suspend that 5-year period for up to 10 years. Does my scenario meet this criteria?
I also recognize that I will owe taxes on the depreciation of the property that I claimed while I was renting it.
