No, it's not true. "Been told" is not a reliable source of tax information.
If you owned and lived in the home for two of the five years preceding the sale, you can exclude up to $250,000 of the profit from tax. Any profit over $250,000 is taxable. Whoever told you that the taxes "no longer apply" might have been confused about this rule, or you might have misunderstood what the person said.
There are lots more details to the requirements for the exclusion. If you are thinking of selling your home, take a look at IRS Publication 523, Selling Your Home.
