it's the gross proceeds (ie the sales price unreduced for the mortgage) that is the sales price
your tax basis is you portion of the original cost + improvements + any closing cost you paid when you sold it
you report this n form 8949 type F or
in TurboTax, you can use the home sale worksheet and there is also a worksheet/questions for computing your tax basis.
Because you haven't lived in the house for the required period, you are not entitled to the home sale exclusion.
