Capital Gains On Rental Sale

What is the name of your state? VA, CA

I am a Marine Corps officer retiring in VA and want to sell as my primary residence my CA home I bought in 1982. I lived in the home 82 - 85 and 88 - 91 but have rented it since then. I requested orders to CA but was unable to get back to move into the house.

I have heard that their is tax law precedence that would support an exemption from capital gains tax on this sale.

Does anyone know of a case I could cite or how I could try this approach?

It's section 121, but it doesn't help you since you have not lived in the house during the last 5 years. You'll pay capital gains taxes (max 20%) on the gain & taxes on recaptured depreciation (max 25%) on the depreciation allowed or allowable since 5/1997. If you haven't been claiming depreciation, go to a tax professional *now* and get your last 3 years' taxes amended. (1999-2001).