1031 with a twist.....

[Brian Levredge]

I'm thinking about moving in a few years. I would like to sell a couple of my investment properties and 1031 into a new house. I would in turn rent this house out for a minimum of one year and a day at market rates and then occupy it myself. My first question is: does this trigger any kind of taxable event? If it does, are there different strategies to avoid it (ie: longer wait period, etc.)?

With that in mind I would want to take advantage of the 500k (I'm married) tax free gain on a primary residence based on the occupancy standards.

I've read about others doing this (not on BP) and was wondering if anyone has any experience or advice on this particular subject or if it's just out and out not possible