@Andz909 - note that it's the exclusion that is reduced, not the capital gain.
Let's assume you moved for a job related reason and sold the home exactly 1 year after purchasing the house and the capital gain was $150,000.
The capital gain is still $150,000 - it does not get adjusted.
What does get adjusted is the exclusion. if you are filing Joint, the exclusion would be $250,000 instead of $500,000 (50% because you only owned and resided in the home for 12 of the required 24 months).
