Captial Gains on Personal Real estate
My husband and I have owned a piece of property for 5 years. We built a house on this property and moved into the house last May. Due to a death in our family we are going to have to sell our dream home and relocate. Will we have to pay Capital Gains tax if there is any profit? 
Perhaps not.
Typically, to qualify for the capital gains exclusion, the homeowner must have owned AND occupied the property as a primary residence for two of the five years prior to the sale.
The IRS does have hardship exceptions to the two year ownership and use rules. If your circumstances qualify under one of these exceptions, then your capital gain exclusion is prorated over the actual period of ownership and use. In your case, let's say that you sell the property in May (one year after you moved in). If you qualify for a hardship exception, your capital gains exclusion would be $125K per taxpayer.
Consult your personal tax advisor for specific details.