Selling Home, Tax

We lived in our current home only 11 months.
I am planning to sell the home.
I can get a significant gain.
If spouse moved to another State with a new job
(new job, not job transfer)
Since we lived less than 2 years, Am I eligible to take exclusion for tax gain. Does this qualify as change in place
of employment

Home sale and interstate move.

You do not qualify to exclude the gain on the sale. To exclude gain on the sale of your home, you must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale.

If you asked whether the move qualifies as a change in place of employment so that you can deduct moving expenses, you probably can.

Your spouse can deduct moving expenses if your spouse meets the distance test and the time test.

The move will meet the distance test if the new main job location is at least 50 miles farther from the former home than the old main job location was from the former home. For example, if your old main job was 3 miles from the former home, the new main job must be at least 53 miles from that former home. If you are moving to another state, that will qualify.

Under the time test, an employee, must work full time for at least 39 weeks during the first 12 months after arriving in the general area of the new job location. For this time test, count only full-time work as an employee. Your spouse does not have to work for the same employer for the 39 weeks. There is no need to work 39 weeks in a row. However, your spouse must work full time within the same general commuting area.

You can exclude gain on the home even if you lived
less than 2 years. (prorated if you live 1 year, you are eligable for half 125000 - Single, 250000 - married)
There are 2 reasons IRS defined
They are
1. Change in Place of Employment
2. Change in Health reasons

If my spouse change her job in a new state 500 miles away (new job, not job transfer) Am eligable to take gain with out paying taxes

I agree with you. If you sold the home DUE TO the change in employment, then you do qualify for the reduced exclusion of gain.

You can figure the amount you do qualify for on Worksheet 3 on Page 13 of “IRS Publication 523 Selling Your Home.” You can download the Publication for free at: http://www.irs.ustreas.gov/forms_pubs/index.html.

I changed my job in same city. But moved to close
to my office

1. My previous job is 12 miles from my previous home
2. My new job is 33 miles from my previous home
3. My new job is 10 miles from my new Apartment

I got Gain when I sold the home. I stayed only one year in the home
Am I still eligiable for partial exclusion because
of change in place of employment. Is there any distance
requirement

Neither the Code or the Regulations define “change in place of employment,” or give guidelines in how to define it.
Therefore, I believe you can lawfully qualify as long as the motive for the sale of the residence was the change in place of employment. There is no mileage specification.

Thanks for the reply, That is what I am thinking too
I sold the house last month (january 2001), Do I have to follow 2001 guidelines. Did they change any guidelines in 2001
Do I have to follow 2000 or 2001
Where can I get information on 2001 (Selling Home Guidelines)

Sale of home

I believe the rules for sales in 2001 are the same as for sales in 2000.

The rules are well explained in IRS Publication 523, Selling Your Home. Here is a link to the IRS site where you can download the Pub. http://www.irs.ustreas.gov/forms_pubs/index.html