Q. So can you tell me if this partial exclusion rule would apply to us?
A. Yes, Probably. You may have a hard time getting somebody to give a firm answer to that question. Qualifying for the "unforeseen circumstances" exception to the 2 year rule depends on the details. I'd go for it.
"Life events the service [IRS] has most frequently ruled upon are those taxpayers did not plan when they purchased a residence and that increased the number of dependents living under one roof. They include the addition of children via pregnancy" Reference: https://www.journalofaccountancy.com/issues/2009/nov/20091783.html
The other reference cited above is repeated here: http://www.nolo.com/legal-encyclopedia/the-partial-home-sale-tax-exclusion-irs-approved-unforeseen-c...
