1030 or move back in for two years

[Michael Clardy]

I am moving back to the Bay Area where my wife and I own a home.  She does not want to live in the house so we are trying to figure out a reasonable strategy for leveraging the house to buy a property that is in a more desirable location.  I am hoping to gather some insight into this situation.  I know that moving back into the house for two years will help us avoid the capital gains on the first $500K.   I also know that doing a 1031 exchange will enable us to carry all of the proceeds from the sale as a deposit on a new property.   We would eventually move into the second property and establish it as our primary residence (6-10 years from now).  

Are there ways to look at these choices that go beyond the tax implications?

Is there one that is the more obvious choice?

Thanks,

MC