excluding capital gains on home sale...

[reclusf]

What is the name of your state?What is the name of your state? California

Hi there, and thanks for taking the time to read:

My situation is this: I'm selling a home I've only lived in for about a year. I'm leaving my job and moving out of state to either go back to school, or do something else. I'm still up in the air!

In any case, I'd love to exclude capital gains. From what I can gather, I can claim a partial exclusion (basically $125,000, half of $250,000, for one year's residence - pub 523), which will more than cover my gain (calculated: selling price minus expenses minus adjusted basis). I guess my questions are these:

1. Do I have to be fired to qualify for the "change in employment". I ask this 'cause I don't want to get bit next year. It's my choice to leave my job...with no hard feelings, which I believe disqualifies me from unemployment benefits.

2. Is there any way to know whether this exclusion will still exist for 2005??? That one scares me; if the tax law for exclusion changes, I'll be screwed!

Thanks so much!

[Snipes5]

You are fine, unless you bought the house knowing you would have to sell before the two years was up.

That exclusion is written into the tax code and has no "sunset" or expiration provision in it that I am aware of.

Snipes