Tax professionals I have spoken to say that under 1 year, you'd need to have a good excuse why you moved, between 1-2 years some explanation and after 2 years you should be clear to use the capital gains exclusion.
The 10,000 page document explaining our tax laws is up for interpretation so choose a tax professional to help guide you on how you want to define this transaction. Also, understand that the interpretation in federal law may not coincide in the interpretation of state law.
...Anyone interested in going to a flat tax? ....... more