Was this asset included in the sale of your main home?
That relates to the "2 of last 5" capital gains tax exclusion. Basically, if the property was your primary residence for 2 years of the last 5 years you owned it, counting back from the closing date of the sale, then your first $250K of gain on the sale is tax free.
To be more precise, if the property was your primary residence for 730 days or more, of the last 1826 days you owned it, counting back from the closing date of the sale, then your first $250K of gain on the tax is tax exempt. ($500K if married filing joint and both of you lived in the house for the required time.) Note also that the 730 days do not have to be consecutive days, so long as all days it was your primary residence, was within t he last 1826 days you owned it.
So if it wasn't your primary residence during the prescribed time frame, just answer NO.
