Is there a tax expert out there?  I really need your help.

I bought a house in upstate New York back in 1997 which I have been
reporting as my primary residence.  In 2001 I  bought a co-op
apartment in Brooklyn NY for $276,000, but I coninued to use/report
the upstate house as my primary residence to avoid paying the New York
City income tax and because I still spent a considerable amout of time
at the upstate house (I can work from home). On December 10 2004 I
sold the Brooklyn co-op for $490,000 but immediately (on Decemer 13th)
used the proceeds to purchase a house in Brooklyn which I now report
as my primary residence(the upstate home will become a second home).

Since the proceeds from the Brooklyn co-op were used to purchase a
primary residence, can I avoid paying capital gains on the sale of the
co-op?  Otherwise, I'm afraid I am going to get seriously clobbered.
If I can't avoid paying the capital gains, is there anyway I can
reduce the amount I may have to pay?

Thanks,
Anita