My husband and I started building a home May 2020. 3 bed, 2 bath with office. We had a friend living with us "rent free" at this time, so we had one guest room and an office for my husband who was forced to work from home due to COVID. After discovering we had infertility issues, we started the process of becoming licensed to foster children Sept. 2020. We moved into our home and officially closed on the sale Dec. 2020. February of 2021 we had 2 older children (siblings) placed with us through foster care. My husband started having to share his office with our daughter and our son had his own room and our friend had his own room. Per foster care requirements the children were not allowed to share a room. We found out Sept. 2021 we were eligible to adopt the children and we moved forward with this, but knowing we needed a 4 bedroom house, we sold our home and are renting it back until Oct. 2022 when our new house will be done being built.
Does needing more rooms due to the unforeseen adoption of our children count as unforeseen circumstances for the purpose of not paying short term capital gains on our home?
