My husband and I sold our rental house in Texas that we purchase back in 2007 while he was active duty, we put the house up for rent in 2010 due to moving to Germany for our next duty station, then he got order and we moved to Virginia where my husband eventually got out of the military in 2016. We end up staying here in Virginia since he got a job and we couldn't make our way back to Texas, we decided to sell the house this year 2021 since the market was really good.
My question is I'm assuming we have to pay capital gains and can't be exempt since he is no longer active duty? Other people we have talked to think we would be able to exempt. Anyone dealt with this before and can provide any help
