We purchased a home in Colorado in August 2021 for our primary residence and lived there until February 2023. Due to a job change requiring relocation over 1000 miles away, we sold the house in March 2023 after residing in it for only 18 months, resulting in a $40,000 gain. Two questions: 1) As the sale is due to relocation and falls within the partial exclusion criteria, is it necessary to report this on tax forms? 2) Does this gain get added to the Adjusted Gross Income (AGI) for the year?
