AnnetteB6
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Using the exception related to a change in job location, you will not qualify to claim the full exclusion of your gain.  You may qualify for a partial exclusion that will be based on the time that you did own and live in the house.  

 

As for documentation, you should have new W-2s and paperwork showing that you have changed residence to a new location, but it is unlikely that you would be required to provide any additional documentation.  Qualifying for a partial exclusion would not be considered a loophole to be concerning especially since the exclusion is only allowed one time in any two-year period.  

 

For your reference, this topic is discussed in IRS Publication 523, Selling Your Home.

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