Capital Gains Law help for reduced exclusion

What is the name of your state? California

I sold a home Sept 24, 2001 and bought the one I am in now on Aug 30, 2001. We need to sell our house because my husband is taking a job that is 6 hours from where we currently live. I was told that you can only receive the exclusion for capital gains once every two years. Since we did that with our other house sold on Sep 24, 2001, we would have to wait until Sept 25, 2001 to be able to receive the maximum exclusion again. BUT, here is the question, because we are moving due to employment change over 50 further from where we live, can we receive a reduced maximum exclusion? I went through worksheet 3 on pub 523 and our reduced looks like it would be $479k. We would only have $62k in gain for the period of time that we have owned this current home. Does that mean that we would be able to exclude all of the $62k from taxes because of the employment change? We want to put the house on the market now, so that we can take the job that starts Sept 1st. Also, the previous house was owned for 35 months and our gain was excluded (96K) on our 2001 tax return. Thank you, Laurie

[abezon]

Yes, you can use a reduced exclusion when you sell a house due to a change in employment.