Advice for selling SFH for max profit/1031 exchange eligibility

[Hunter Burrell]

Hello! my Aunt is looking to sell her 4br/2ba SFH in Commack on Long Island. They are inexperienced and I believe are working with an agent who isn't investor savvy. Wanted to try and give her advice on getting the most for the sale/if she can and should use a 1031 exchange.

I believe the exchange can only be used for rental properties? They have been renting out one of the rooms but I don’t think were reporting it. I know it’s a long shot but is there any way they could now report the past rental income, pay taxes on it, and then be eligible for the 1031 exchange? I’m assuming the taxes paid for the rent would be lower than the savings on the sale.

Sorry if that’s a silly question. If you have any other suggestions on her sale for getting the most I’d appreciate it. Right now she has a lot decluttering to do, and I recommended possibly an interior repainting as well. Thank you for your time!!