Hal_Al
Level 15

Deductions & credits

You may not need to suspend the 5 year period.   There is an exception to the 2 year rule for those who move for a job change, including military orders.  But the maximum exclusion is reduced.

 

Example: you owned and lived in the house for 15 months and sold it for a $100,000 profit.  Your maximum exclusion is reduced  to 15/24 x $500,000 = $312,500.   Since your $100,000 profit is less than $312,500, you get to exclude the entire $100,000 gain.