Real Estate News Here's an excerpt from a Real Estate column. Many of you have asked me questions about selling without having been in your home a full TWO years. As of the end of this year, this is still the rule. Questions? Call me. (925) 672-0884 Cross town move in 14-months won't be tax free Dear Bob: We made a smart bargain home purchase about 14 months ago. Our house has gone up in market value by about $130,000. We want to move across town to be closer to our son's special school. I recall you wrote, some time ago, about partial use of that $250,000 home-sale tax exemption. Can this profitable sale qualify? - Daisy R Dear Daisy: No. To qualify for the Internal Revenue Code 121 $250,000 ($500,000 for a married couple filing jointly) principal residence sale tax exemption, you must have owned and occupied the home an "aggregate" 24 months during the 60 months before the sale. The only exceptions for partial exemptions occur if the sale in fewer than 24 months is due to a job location change qualifying for the move-expense tax deduction or a move due to health reasons. Your home sale to be close to your son's school doesn't qualify. Your tax advisor has full details. Dear Bob: I almost had a heart attack when I read an article that said a homeowner forfeits their $250,000 sale tax exemption if they move out and rent the house to a tenant. That's what I did about a year ago. I plan to rent my old principal residence, where I had lived almost 10 years, for two years while on a temporary out-of-town job assignment. After two years, I might have to sell my old home to move near my employer's home office. Have I lost my $250,000 home-sale tax exemption? - Carter W. Dear Carter: No. Don't worry. That writer was wrong. Several readers sent me that newspaper clipping: however, that writer's information is more than two years behind the times. Maybe the column was a rerun. The 1997 Tax Act created the new $250,000 home-sale tax exemption (up to $500,000 for married couples filing jointly). Principal residence sellers qualify if they owned and occupied a primary residence an "aggregate" of two years during the five years before the sale. You clearly qualify. However, if you don't sell yoru principal residence within 36 months after moving out, then you are no longer eligible. Renting your former principal residence up to 36 months before selling it won't disqualify you. For more details, please consult your tax advisor.