@xmasbaby0 - I think the reporting requirement is a little different than stated.. if you are issued a 1099-S, you must report the sale, even if the result is no capital gains tax....
https://www.irs.gov/pub/irs-pdf/p523.pdf
bottom left of page 15......
"You received a Form 1099-S. If so, you must report the sale on Form 8949 even if you have no taxable
gain to report. See Instructions for Form 8949 and Instructions for Schedule D (Form 1040) for more details."
If you don't receive a 1099-S and your sales price is less than $250,000 / $500,000, there is no need to report the sale, but according to the 1099-S instructions, transferers are required to give the seller one and report the sale to the IRS.
https://www.irs.gov/pub/irs-prior/i1040sd--2022.pdf
page 2 on the right:
Sale of Your Home
You may not need to report the sale or exchange of your main home.
If you must report it, complete Form 8949 before Schedule D. Report the sale or exchange of your
main home on Form 8949 if:
• You can't exclude all of your gain from income, or
• You received a Form 1099-S for the sale or exchange.
