So this is not the typical "can I a home with a 1031 to live in". I know those rules. My question is a bit different.
I have lived in my primary residence for more than 2 years. I would like to sell another rental property and use the profits to buy my primary residence to take advantage of the tax exemption on my primary residence sale. After the sales completed, my primary residence will become an investment property which I will rent out. We are then moving overseas.
Do be clear this is the process in my mind:
1- sell my rental property into 1031
2- sell my primary residence to myself using 1031 funds
3- move out of primary residence forever
4- rent out house forever
I have no intention of ever returning to my current primary residence.
Thanks in advance