Yes, in the year of the sale you will need to file a tax form. Whether you actually owe tax depends on all the details... It sounds like this will likely add to your taxable income for income tax. For the exemption there are various requirements, including that you own it for at least 24 months.
https://www.irs.gov/publications/p523/ar02.html#en_US_2014_publink10008937
