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Not crazy. Suggest it now before your lease is up so you can do it for a few weeks or so before you would have to move. This way you can kind of have a trial period. This might make your employer more willing to give it a try if they are concerned about how it will work out. If your work doesn't suffer and everyone can deal with you being remote then it shouldn't matter that you are 10 miles away or 200 miles away. This is 2014... remote work should be assumed and being in office should be the exception.

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