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As long as you lived in the condo for 2 out of the past 5 years as your primary residence you would qualify for the exemption. You would have to recapture the depreciation that you claimed during the time that the property was a rental. This would be picked up as ordinary income.
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No the depreciation recapture would be separate from the $250,000 exclusion. How much did you pay for the condo? How much depreciation did you take? What do you think the condo will sell for?
So based on your numbers you would have a gain of $203,263. $192,000 would be tax free. $11,263 would be subject to the recapture. The reason behind this is that you received a ordinary deduction when you claimed this expense. Recapturing the depreciation reverses this expense.
Did you have a loss on the rental activity for either of the two years? Were you able to take advantage of the loss? If your Adjusted Gross Income (total income) is above $75,000 your loss may have been suspended.