NJ resident owns "contract to dwell in property" in Thailand and sells at a profit.

[bxscpa]

Client bought residence in Thailand but is unable to own property because he is not a national so he has a "contract to dwell in property". Paid $200,000 in 2004. He is selling his "contract to dwell in property" for $450,000 in 2015/2016. How do I report this transaction?

[TaxGuyBill]

I would think it would be treated as a long-term capital gain, but does not qualify for the $250,000/$500,000 home exclusion.