Once you have lived in the property for two out of the previous five years, you could qualify for the primary residence exclusion, which allows you to take the first 250k (500k if married) tax-free.

Use as Your Primary Residence: In order for the arrangement to potentially qualify, you (the renters) must use the property as your primary residence.

Quote from @Stephen Nelson: Two random comments but I'll mention because it seems sort of relevant that I used to teach the Choice of Entity class to CPAs and attorneys in the masters in taxation program at the country's big graduate tax school.

Then they give you a random login/password for that site that you'll never remember and can't change.  

I'm ashamed to admit, I ended up eating it a few times.Now I do it differently:Move-in: pics, quick video, checklist, both of us sign off. borderline stuff gets noted.Routine checks: not to snoop, just to catch stuff early and have a time-stamped trail.Move-out: side by side with move-in docs—no gray area anymore.I got so tired of juggling random pics/notes/folders that I finally started building a little mobile app for myself to keep it organized.

Turning over a past primary residence into a rental is the way a lot of us got our start in RE Investing.Cheers,

I have a 3/2.5 in Old Lake Highlands near White Rock Lake (~1 mile) that my family and I are living in as a primary residence, but I have been thinking about house hacking into another house and then doing a MTR on this 3/2.5.

Primary Residence History.

This has included:*Financial oversight with budgets and bookkeeping, having a finger on the pulse of cashflow and financials*Regular communication with partners (business partner, accountant, contractors and investors)*Implementing weekly sync calls to go over short and long term goals/lists (highly recommend the book Rocket Fuel by Gino Wickman on this one)*Strategic planning, focusing on not just the current projects, but looking ahead and having plans in place to maintain momentum*Analysis of each project to determine wins/lessons and use these to continue to improveI think regardless of the business, being intentional versus random and careless certainly makes and impact on progress and scaling.   

The market seems pretty saturated so it doesn't seem to me like buying a random STR specifically for depreciation makes a lot of sense...