Tax Implications for first rental property

[Michael Wilson]

Hey Y'all!

I would love any and all advice on my first potential SFR. My wife and I are moving from Clemson, SC to Anderson, SC and are considering renting out our house in Clemson rather than selling because the market is growing and rental income should be steady seeing as it is a growing university.

We would be purchasing a home in Anderson in hopes of doing a 2 year live and flip. However, my concern is the tax implications of owning two homes. This is where I need help. What all do I need to take into consideration when I am thinking about tax time? 

Thanks in advance for all your help!

[Daniel Hyman]

@Michael Wilson

One thing to consider is the Section 121 Exclusion which means that if you do sell a home, you can exclude up to 500k of gain on the sale (if married filing jointly). But you must have used the home as a principal residence for at least two years during the 5-year period ending on the date of sale.