What exclusions are there to the capital gains tax on the sale of my primary residence if I owned/lived in the house less than 2 years?

[derekpost]

Situation: I sold my first ever primary residence in May of 2015. I've since then bought my current primary residence in November of 2015. I'm now looking to sell my current residence (gains would be less than $250,000) and will likely close prior to November of 2017, thus not meeting the 2 out of 5 year "use" test exclusion. However, I was curious if other exclusions apply. I purchased my current home filing as a single person, and my wife has never owned a home and is also not on the deed. In September of 2016 I got married and more recently, we're expecting a child. Would these be considered "life changing" circumstances, thus letting us take advantage of the exclusion? Or possibly because there was a gap from May of 2015 when I sold my first house to November of 2015 when I bought my current home, the sales between the May 2015 house and potential sale of my current home will be beyond 2 years? Any help would be appreciated.

[TomD8]

To exclude gain, a taxpayer must both own and use the home as a principal residence for two of the five years leading up to the date of sale.  The two years need not be consecutive.

The tax law provides an exception to the two-year rules for use, ownership and claimed exclusion when the primary reason for the sale is health, change in place of employment, or, to the extent provided in IRS regulations, “unforeseen circumstances.”

A sale will be considered as occurring primarily because of “unforeseen circumstances” if any of these events occur during the taxpayer’s period of use and ownership of the residence:

• death,
• divorce or legal separation,
• becoming eligible for unemployment compensation,
• a change in employment that leaves the taxpayer unable to pay the mortgage or reasonable basic living expenses,
• multiple births resulting from the same pregnancy,
• damage to the residence resulting from a natural or man-made disaster, or an act of war or terrorism, and
• condemnation, seizure or other involuntary conversion of the property.

https://www.irs.gov/uac/irs-issues-home-sale-exclusion-rules