"sjjess" <sjjess[at]nospam.hotmail.com> wrote:

[snip]
- quote -

Sounds like you'd be eligible. Change in employment is one
of the better-established reasons for allowing a prorated
exclusion.

- quote -

Short-term capital gain, no exclusion since you didn't live
in it and aren't selling it for a recognized unforeseen
reason.

You're clearing enough on these deals that you can well
afford professional advice, which my two cents isn't...

--
Chris Green

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My girlfriend and I bought our first house together as joint
tenants in July 2001 for about $190,000. We sold it in
August 2003 for about $270,000. We closed on our new house
in December 2003 for about $225,000.

In June 2005, we plan to move out of state in order for me
to go back to school and my girlfriend, who will be my wife
by then, to get a new job. We anticipate selling our current
house for about $425,000. We are going from California to
Wisconsin and like I said we will be married prior to our
sale of our current house...unless it will have a large
negative tax impact on use when we sell our house then we
can wait.

We made about $80,000 on the sale of our first home which we
lived in for 25 consecutive months as our primary residence.
When we sell our current home we hope to make as much as
$200,000 on it, but we will have only lived in it about 18
consecutive months as our primary residence. Are we
eligible for the capital gain exclusion because my
girlfriend is moving to take a teaching job in another state
and I am leaving my employment in order to go back to
school? If not, what's the damage going to be?

Now a twist. The real estate market it crazy where I live
in California. You can put a deposit down on a new house and
by the time it is built 8-9 months later it will have
appreciated almost $75-100,000! I would like to sell my
current home next June and close on a new house for about
$350,000 and immediately put it on the market and sell it
within a month for about $425,000 or more. Then I would
move back to Wisconsin. I do not plan on living in this
house. What are the tax ramifications now?

This is all confusing to me and I am in the process of
looking for a good tax expert. Thanks in advance for all
input.

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