If you were using TurboTax to file your taxes up to now and the Schedule E is on that account, indicate that it was converted to personal use.
The date it was converted would be the date you stopped advertising for a tenant.
Enter any expenses incurred before that date.
If it stopped being a rental in 2023, you should have reported it converted to personal use on your 2023 return.
Going forward, yes, if you own and live in the home 2 of the 5 years prior to a sale, you may be eligible for the "exclusion to capital gains."
Be aware that the depreciation taken while it was a rental (or what could have been taken, you have no option of not taking depreciation) will need to be recaptured.
Since depreciation on residential rental property is over 27.5 years, and you had it as a rental for around 15 years, it's safe to say the "Adjusted Basis" is a little less than half what you paid for it. That is what the sale will be based on.
Say you purchased for 300,000 and took (or should have taken) 160,000 depreciation. That gives you an adjusted basis of 140,000. If you sell for 400,000, the 100,000 capital gain might be excluded, but the 160,000 depreciation would be recaptured as ordinary income and taxed at your tax rate.
IRS Pub 523
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