Primary residence turned rental - tax implications with a bank owned purchase

[Thor Camargo]

So I bought a large 4BR home with the intention of living in it. Long story short, my relationship with a woman and her kid didn't work out, and I was left with the home. 

Bought the home $60k under market value due to it being bank foreclosed and owned for 7 years. Put the $60k into it to fix everything that was needed, and now I'm having a hard time selling it.

I just bought a new home out of state. If I can sell the current home, then I don't think there's an issue since it's my primary residence, and any profit would be allowed to roll into the new one.

But if I turn it into a rental - then do I have to pay taxes on the profit from the original purchase price ($60k under market value) and the sell price?

Seems like a good primary home opportunity turned bad when having to turn it into a rental. :(