MindyB
Expert Alumni

Investors & landlords

No.  You need to have used the home as your primary residence for at least 2 years out of the 5 years prior to the sale. Since you only lived in it for 1 year, you will fail the test. See: Qualifying for the exclusion

 

You will indicate the property was sold in the rental section, and the gain will be reported on your tax return.  See: I sold my rental property. How do I report that?