Thanks but....

What is the name of your state? IL
Thanks for the info on the "reduced exclusion residence" clause and I was able to find the specs on the the IRS webpage as you said, but****************************..we've hit another wall as the tax rule says the New place of work must be at least 50 miles farther from the old home than the old workplace was from that home.....

Here is the thing**************we are purchasing a buisness and when we compute the calculation as described above we come up 13 miles short of th 50 required but the commute to our new business, although 13 miles short, would be in excess of 2 and 1/2 hours due to the location - HELP HELP HELP

Is there anything we can do?
Thanks

[Snipes5]

As far as I know, the IRS does not care how long your commute is, and there is no exception to the exception for that.

I would stay in the house until you can sell for full exclusion (two years), or move to someplace that is further away.

Snipes

THanks abezon for the info but of course I am still confused. As far as I interperet tha "reduced exclusion" doesn't distinguish that the 50 mile rule is only if you want to claim moving expenses. We don't care about moving expenses we will cover them all - we want to be able to sell our home and avoid capital gains taxes after only living here 13 months. How do we file that? Thank you so much you have no idea how much we appreciate it.

P.S.
we got a reply from another member that read "as far as I know the IRS does not care how long your commute is, and there is no exception to the exception for that. I would stay in the house until you can sell for full exclusion (two year) or move to someplace that is further away"

Is there any merit in this?