1031 Exchange Equivalent from investment properties into primary residence

[Kim Tran]

Hi everyone,

I am a new member of BiggerPockets and am eager to learn from everyone! My husband and I own a rental property and a primary residence. We are looking to buy a bigger primary residence to start a family. We would like to turn our current primary residence into a rental investment and 1031 exchange for our current rental property to help with buying a new primary residence. 

From our understanding, the 1031 exchange only works to exchange from 1 investment property into another. Is there an equivalent where we can sell our investment property to purchase a primary residence and defer the capital gains tax? 

Thank you so much! Appreciate all your help!