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Subject:  Re: Does home sale exclusion apply to me? Date:  5/3/2000  2:15 AM
Author:  ptheland Number:  35317 of 127637

We purchased our home on in August of '97. I took a job in another state *almost* two years later, and we moved in May of 99. Rather than sell the home (we figured we would return after a few years) we rented the house out (at a significant loss. Just enough to cover our new lower living expenses, rather than the old mortgage) to family.

Well, the family members are now moving on, and rather than go through the trouble of renting the place out, we've decided to sell. (Side note: No, I haven't been promoted to putting the almonds on the cookies. We've decided that the house itself is not a keeper.) What I'm wondering is that since we passed the test and the house never became a rental properly, do we qualify for a partial exclusion due to the employment change?

Sound like your just what the partial exclusion was designed to address. The temporary rental should have no bearing on the issue. (In fact, it might help - you never converted it to for-profit rental.) If I were your preparer, I'd take the reduced exclusion in a heartbeat.

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