You would report this in Sale of Home. You will be asked questions to see if you qualify for a partial exclusion.
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on
- Scroll down to Less Common Income
- On Sale of Home (gain or loss), click the start or update button
Please see this LINK for more information.