Yes and yes.
You are in a complicated situation because a few years ago, Congress changed the way the capital gain exclusion is calculated when your personal home is also a former rental.
Let's start with the assumption that the house increased in value $70,000 over those 7 years of ownership, and that during the 5 years of rental you claimed $20,000 of depreciation.
First, you will owe recapture tax of 25% on the depreciation.
Then, your gains is $70,000. The period of time that you rented the home is "non-qualified" for purposes of the exclusion. If that is 5/7th of your total ownership, then 5/7th of the gain, or $50,000, is taxable long term gain. The remaining 2/7th of gain is "qualified" because you lived there, so if you meet all the other qualifications to exclude gain, that 2/7ths or $20,000 of gain is excluded from tax.
The longer you stay there, the higher the exclusion goes. If you sell after 7-1/2 years (90 months) then 60/90ths is non-qualified and 30/90ths is qualified, which is slightly better than 24/84ths.
If you lived in the home before turning it to a rental, that would also be qualified use, so that makes more of your gain eligible for the exclusion. Turbotax will ask things like the date you bought it, the dates you lived as a rental or personal residence. The exclusion is actually calculated on days, not years or months, so you will need that info handy. (For example, owned for 2735 days, used as a rental for 1825 days, etc.)
Your first strategy is to minimize your gain as much as possible by accounting for every possible adjustment to your cost basis (closing costs, permanent improvements, etc.).
The issue of "non-qualified use" is handled correctly by Turbotax but it is not well described in IRS documents. It's in the tax law and IRS regulation, but publication 523 on selling your house doesn't mention it at all, and publication 17 calls is "non-residential use" which is not quite correct.
