No, it is not important if you know you have no taxable gain because of the $500,000 exclusion. In fact, if you didn't receive 1099-S reporting the sale and you have no taxable gain, you don't have to report the home sale at all.
Note: If you lived and owned your
home for at least two years in the 5 year period on the date of sale - you
don't have to report the on your tax return- if your gain is less than $250,000
if filing Single (and $500,000 for married filing jointly both spouses must
live and own the home for 2 years).
If your gain is larger than the
amounts above (or received 1099-S) you must report the sale
- Wages and Income
- Select Less
Common Income
- Select Sale of Home
