none of the gain is excludable since it was not your principal residence for 2 out of 5 years before the sale. in addition, you must recapture as 1250 gain (depreciation recapture) on the lesser of the gain or the depreciation allowed or allowable.
even as a vet the gain would still be taxable
the period you were in the military for up to 10 years can be excluded for the use test.
so your use period is from the date bought it in 2007 to the date you went in the military, since you were in for less than 10 years, your use period resumes when you left the military til the date you sold it.
that is more than 5 years.
counting back from the date of sale and ignoring the period you were in the military it was not your principal residence for 2 out 5 years before sale.
so in either case the home sale exclusion would not apply.
