The military service exemption from residing in the house in two out of previous five years allows you to suspend the 5-year test period for ownership and residence. It does not waive the two year residence period. There is another exception that allows you to take a partial exemption if you took or were transferred to a new job in a work location at least 50 miles farther from the home than your old work location. For additional information, see the following IRS Publication: Publication 523, Selling Your Home
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"