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You are correct. There would be no tax on the sale since this would qualify as your principal residence. Since this has been your principal residence, under Section 121 of the Internal Revenue Code you can exclude up to $250,000 of gain from the sale of your principal residence. Thus, since your gain did not exceed $250,000, all your gain would be excluded from income under Section 121. This is a link to that Code section: https://www.law.cornell.edu/uscode/text/26/121. But, you will need to report the sale on Schedule D and Form 8949 to be attached to the Form 1040 because unless you report the sale, the IRS presumes the basis is zero and treats the entire proceeds as gain.
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