The Internal Revenue Service states that you must report the sale of a home unless it was your primary residence and you did not realize any gain over the $250,000 exclusion for single and head of household filers or the $500,000 exclusion amount for married filers.n most cases, the sale of an inherited home is a reportable event, even if you do not have to pay taxes on the sale. This can be a complicated matter, and you must report completely accurate information to avoid tax problems.