Tax advice for investing
I'm putting together my investment plan. I currently have a primary residence. (If I had known I was going to get involved in real estate investing I'd have done this completely different but it is what it is). If I understand correctly, you must own a home for at least two years of 5 years or I'd take a significant tax hit. Is there a possibility that if I purchased another home that I could rent out my current as long as I move back in for a total of 2 years? My thought here would be to purchase the other property and rent out whichever home rented first and live in the other so that I could bring in immediate cash flow. My current house actually has higher cash flow potential than a smaller rental home. But obviously it would depend on what renters needed at the time. I'm trying to figure out the most flexible way to move forward. Thanks in advance for any advice.