How soon can I move into a rental after I buy to make it my home?

[Janell Rasper]

If I purchase a home as a rental property (just a standard purchase with my LLC, using proceeds/cash from another rental property sale, but not using an actual 1031 exchange), and almost immediately move into it and claim it as homestead, is this allowed? I have a problem with a new rental home, that because of Covid, I have been unable to rent it. I do not want to leave it vacant, so I want to move into it. If I do this, do I trigger any tax implications? Since the funds came from a rental sale? Accountants anyone?

Or - does the 5 year rule apply here? That as long as I live in the home for at least 5 or more years, claiming it as my homestead, that even though the funds came from a 'sold' rental property, it would be allowed? I live in WI if that matters....

Thanks for any help!! Stay safe, Janell