While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

Carolina or the fact that the SC legislature passed a law that can exempt your rental from property taxes if you meet certain qualifications.I'm wrapping up my Enrolled Agent licensing in early May so I can put that moniker on my title even though I've been doing business and personal taxes for years.Feel free to reach out if you have any questions. 

If you are looking for the capital gains exemption you need only have lived there 2 of the past 5 years.

Markets like Indianapolis:  state of IN has a 2% tax rate and investors get no homestead exemption;  That means on a $350,000 home you're paying assessed value tax around $6000/year or $500/month;  Add $200/month what you should figure as short & long term capital repairs;   $175/month MGMT:   $75/month lease fee assuming tenant stays 2 years;  $25/month HOA minimum, 1 month loss of rent assuming vacancy during turnover every 2 years = $80, and you are at $1055/month:  This is based on a nice neighborhood/class A/B in indy Suburbs;  On a 4/2 1/2  SFR you'll pull $2000-2100/month rent,  so you're left with $1000 to cover your P&I and profit.

There are also lifetime gift exemptions, but I think you’re overthinking this. 

But assuming everyone is, again, the question becomes whether or not these calls are exempt.

The fha 100 mile rule will be triggered whenever you try to vacate your current primary and also trying to use the rental income to qualify.However, this 100 mile rule can be exempted for the following rulesRelocationIncrease in family sizeVacating a joint owned propertyNon-occupying co-borrowerIf you are not trying to use FHA on your 2nd house hack, you can use conventional and the rules that I mentioned above will not be a concern.

@Eric GreenbergWhat exactly is the homestead exemption?

The fha 100 mile rule will be triggered whenever you try to vacate your current primary and also trying to use the rental income to qualify.However, this 100 mile rule can be exempted for the following rulesRelocationIncrease in family sizeVacating a joint owned propertyNon-occupying co-borrowerIf you are not trying to use FHA on your 2nd house hack, you can use conventional and the rules that I mentioned above will not be a concern.

If you have lived in the condo for 3 out of the past 5 years you can take advantage of the primary residence sales capital gains exemption and sell the condo.