Transitioning from H1B to H4 and back to h1B

Question

My wife works on H1b in NY and I work on H1B in Bay area. We were thinking that my wife quit the h1b job and change status to h4, move to bay area and then start looking for H1b again. This is to ensure that she is never out of status.

Few issues we have in the meanwhile are  - she needs to get her passport renewed because her passport is expiring in April 2014.

1. Is she counted under the cap during H4 to H1 transition?
2. What documents do we send for H4
3. If she has to remain in status, what are the dates she needs to file and then quit the job?

Answer 1

1. She wont be counted under the cap since she hasnt completed 6 years on H1b yet.

2. Check the USCIS website for I-539  for what documents you need to send  for h4 conversion

3. File before quiting the job