The profit from your home sale might not be taxable income.
Your capital gain—or loss—is the difference between the sales price and your basis in the property, which is what you paid for it plus certain qualifying costs. You would have a gain of $200,000 if you purchased your home for $150,000 and you were to sell it for $350,000. You wouldn't have to report any of that money as taxable income on your tax return if you're single, because $200,000 is less than the $250,000 exclusion.
