Need help with tax implications of sale

[Paul Murch]

Looking to sell a house this Fall. Bought in 2010 as primary residence. Lived in it for 27 months. Moved out in late 2012 due to military transfer. Started renting it out. I made assumption that it would always be a rental and started accounting as such. I deducted all expenses and started to depreciate. There is an exception for military that extends the 5-year window to 10 years for exempting from capital gains. Can I still qualify for that since I took depreciation and expense deductions the last three years? Also, which basis do I have to use? The depreciable basis when I converted it to a rental in 2012 was much lower that what I originally paid. I know I need to ask an accountant, but would like some insight from the BP crowd first.