Homestead Exemption Questions

[Paul C.]

Hi, I'm trying to figure out what to do with the homestead exemption and how it applies to my situation. We owner occupied a home for 2 years and had the homestead exemption on that property. We then started renting it out this year and I just left it as is because I didnt even think about it. Now, we recently bought another property that we are house hacking and going to live in for a year or two. Do I need to remove the homestead exemption from my first property and apply it to my new one? Am I allowed to just leave it on the property that would provide the biggest benefit or does it actively need to be the property I am living in? My main concern is ensuring I'm not doing anything sketchy when it comes to the IRS :)