1031 exchange into early retirement

[Chris Taylor]

Hello. I'll try to keep this simple. We will be selling a rental this spring and wish to do a 1031 transfers into another property, as it has appreciated quite well and we would like to defer the tax. We plan to rent this new property for at least a year and then retire and use it our new primary residence (after selling our current PR). I understand that the safe harbor time period is 2 years, but this seems to be a bit of a gray area based on my reading. Is one full year of renting the property enough time to then recharacterize it as a PR, or will we be penalized and lose the tax benefits we thought we had?  Thank you! I have another question, but will keep it there for now!