Talk to a tax accountant, as stated.
In Iowa (where I live), it applies to flipped real estate that you buy and re-sell within 24 months (last one I did I bought and then sold in the 25th month, therefore no capital gains)
And, yes, the Capital Gains tax is only subject to the value that you gained in the two year period (so, if your Capital Gains is 30%, and you bought a home for $100,000 and sold it for $200,000, you would pay Capital Gains on $100,000 increase. That can be offset by improvements, though, so keep that in mind as well).
Good luck!
JS
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