It would seem the most significant thing you have to know is the "Cost Basis " of your home. That is the amount you originally paid for it plus all major improvements (not repairs). By example, renovating and upgrading your kitchen is an improvement, putting on a new roof is a repair.
If you've lived in your house for at least 2 of the last 5 years you qualify for a home sale exclusion.
A single taxpayer may exclude the first $250,000 of gain from the sale of your home. The exclusion is increased to $500,000 for a married couple filing jointly.
If you subtract the Cost Basis that you just calculated above, from the sale price of the home, you will then get the taxable amount. You can then subtract the appropriate exclusion to get your adjusted taxable amount.
If you did not get a 1099-S, and the sales exclusion was greater than the net profit from the house, you do not have to include it on your tax return.
Publication 523 - Does Your Home Sale Qualify for the Exclusion of Gain?
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