I have owned the house for 11 months, we are selling due to a pregnancy (we will need a larger house with more rooms). All the gains (roughly $12,500) can be rolled into the down payment of the new house if necessary. From what i have read, since we have lived there for less than 5yrs we will have to pay the tax, but it also looks as if there is some exemptions. Will having a baby count for an exemption? or is there some other exemption i can look for?
