Excerpt from Money Magazine 6/03

The capital-gains exclusion on the sale of your home remains a bright spot in the tax code. For the past six years, married homeowners who meet certain simple conditions have been able to shelter $500,000 in gains when they sell their primary home. For single taxpayers, the break is $250,000. To be eligible, you must have owned and lived in the home for at least two of the five years before the sale. (They don't have to be consecutive.) A recent IRS clarification: People who sell their homes in less than two years for certain reasons--a job relocation, health, divorce or other unforeseen circumstances--may now be eligible for a partial tax break. Brighter still, the rule is retroactive. Check with your tax preparer to see if you should file an amended return.