Non-qualified use tax on primary residence

[Eric Richison]

Hi all,

I'm looking into the tax implication of selling my current primary residence, which I used as a rental during a 4 year stint my employer sent me abroad. I'm interested to learn if there is any exceptions to the non-qualified use period or if the only option is a 1031. Here are some of the details.

Purchased: May 2010 @ 325k

Primary residence: May 2010 - July 2013

Rental: July 2013 - July 2017 (Period my employer sent me abroad)

Primary residence: Aug 2017 - Aug 2019 (targeting to sale Aug 2019 to qualify for the 2 out of last 5 year capital gains exclusion)

Estimate sale price: $675k

Profit: $350k

Must I count the 4 years my employer sent me abroad and I rented the property as non-qualified use? 

If my math is right this would amount to ~44% or ~23k in capital gains tax @ 15%.

For completeness, I'm also aware I must recapture the depreciation @ 25%.

Thanks in advance.