Tax Avoidance Strategy - 1031 Exchange & Gift It to my Child - Prove Me Wrong

[Sam Mathew]

Please prove this strategy wrong, but I have not been able to.  

I bought an investment home in Charlotte, NC (I live in FL) when my child was born (14 yrs ago) for $124k that is now worth $340k today.  Because I switched it to a 15 year loan, it is almost paid off in 2 more years (I have been paying much more than the minimum mortgage payment as then yearly rents have increased).  I originally bought the house so one day I could pay my child's college tution and costs (rather than invest in a college 529 plan).

She's in 8th grade this year, so by the time she graduates high school in another 5 years, I'm projecting that it will be worth approx $380-400k, more than enough for college.  

I'm might switch my plans now (and thus why requesting if someone or a tax expert can prove me wrong).  I will still need to seek a tax specialist in the future if laws change. Again, I'm in FL, but she may go to a college out of state.  Boston, Chicago, Ann Arbor, Austin, Raleigh.  No idea yet, but she talks about it.  Whichever city/state she picks, even here in Florida, my new plan is now to 1031 exchange to current investment home to a 4 bedroom property whereever she goes to college.  She can live in it and rent the rooms out to pay her college bills.  But if she lives there for at least 3 out of 5 years, than I am planning to gift the house to her.  You can do a lifetime estate gift to your child up to $13.61M as of 2024 (these limits change).  And then later she can sell it and if it was legally her primary home for at least 3 years, then she will receive all the funds tax free, and I pay no gift tax.  A win-win for her and myself, if legally possible with no issue.

So now my orignially "small" downpayment on the original $124k house, litereally will pay for all her college costs and after I gift the house to her, she will likely receive maybe $550-650k (projections of house in year 2030) tax free once she's done with college and sells the property.  

Do you believe this is possible?  I have researched and it seems completely legal and legit to do.  Again, please prove me otherwise.  Thanks.