A Tax Law* that all homeowners should know...

*Please note that I'm not a tax consultant or tax advisor and you should consult a CPA or Tax Attorney to verify any of the information that I'm providing here.

You don't have to live in your property for the 2-year minimum out of the last 5-years to get a TAX FREE gain of up to $250K (single) & $500K (married) on your equity!

If you must move out (see tax statute list below) of your home after only 1-year of living in the property you could still qualify for 50% of the tax free equity. This is based on the percentage of time that this was your primary residence divided into the 2-year minimum.
Every competent tax preparer should understand the partial exemption of IRC 121(c). However, to qualify there must be a valid reason for the home sale after less than 24 months of owner-occupancy.
The tax statute lists (1) health reasons, (2) job location change qualifying for the moving-cost tax deduction (the new job site must be 50 miles further from old home than was old job site), and (3) unforeseen circumstances, such as divorce, unemployment, multiple births from the same pregnancy, inability to pay the mortgage, etc.
IRS regulations spell out the details. The 2007 "CCH Master Tax Guide" and "J.K. Lasser's Your Income Tax" have excellent explanations.

This could be a very valuable tax law for any homeowner to understand. Please pass this on to your friends.

Again, please contact a CPA like Randy Renoylds in Scotts Valley or Tax Attorney to verify any information that I have provided.