Yes, you have to report the sale of your home because you have received form 1099-S. You will have the exclusion of capital gains of $250,000 ($500,000 if filing jointly) as you have owned and lived in the home for at least 2 years in the last 5 years.
As the home has been rented for a period time, you have to recapture depreciation allowable for the rental period.
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