Hopefully I'm not repeating something above, but I didn't see this mentioned. If the house was a rental at any time during your ownership, or if it was used for business of any type, such as claiming home office expense for a business you owned, or a home office for work related W-2 income you received, then you need to report the sale on your tax return regardless. This is because you will have depreciation that must be recaptured. You will pay tax on the recaptured depreciation no matter what, as depreciation has nothing to do with any exclusions you may qualify for. Even if you didn't take depreciation, you will still pay taxes on the depreciation you *could* have taken.
