Should I have to pay capital gain taxes on the sale of a Texas primary residence we lived in for 15 years and rented for 2?

[Carl]

Just "living in" the property is not enough. It must have been your primary residence for at least 2 of the last 5 years you owned it, to qualify for the capital gains tax exclusion. take note the IRS narrows that even further.

You must have lived in the property as your primary residence for at least 730 days of the last 1826 days you owned it, counting back from the closing date of the sale.

Take note that the depreciation you were required to take while it was classified as a rental is recaptured and taxed when you sell the property. The recaptured depreciation is taxable, no matter what what.

[Mike9241]

you first pay tax on the depreciation allowed or allowable while a rental and/or if you ever took a home office deduction that included depreciation. then the home sale exclusion comes into effect but at most it's $500,000

[Hal_Al]

Q. Should I have to pay capital gain taxes on the sale of a primary residence we lived in for 15 years and rented for 2?

A.  Yes, but only the portion, of the gain, attributable to "depreciation recapture".  Classified as "Section 1250 gain", Depreciation recapture is taxed at ordinary income rates (not capital gains rate), but not more than 25%.

If the period of rental time was BEFORE it was your home, and after 2008, the capital gain is prorated between rental time and primary home time.  If the rental period occurred after it was you home, the time is not prorated, for capital gains.