Isn't there a requirement to reinvest proceeds? I forget the time period, but I thought the qualification was that it was a.) a residence (as you addressed) and b.) the proceeds roll into another residence of equal or greater value.
Or... I could be way off. I had the misfortune of taking Tax accounting in 1985... then the 86 code wiped it all out.
Nope, not if you meet the exclusion requirements I gave above. I think the reinvestment rules may come into play if the property you sell *isn't* your home, though.