You can exclude profits up to $250,000 (if unmarried) or up to $500,000 (if married) on the sale of your main house. You need to have owned and lived in the house for at least two years. You mentioned that you owned the house for five years. The house must also be your primary residence for at least 2 years during the 5 years you owned the home. This exclusion will reduce or eliminate any capital gains tax.