Help with 1031 exchange question

[Mike Lynch]

Hi,

I realize that I cannot exchange investment property for a Personal Residence.

I was told that I can do a 1031 exchange for a rental or business property.

For instance: What if I purchase a "Bed and Breakfast" or campground with owners residence and live there, or purchase a home, live in that home and operate my plumbing company from that home?....... Am I allowed to live and work in my business to avoid capital gains tax? I am not trying to pull one over on Uncle Sam. I honestly want to live in my property and operate my plumbing company so that I do not need to purchase 2 properties. 

Thanks?