Sale of Duplex - Section 121 Exclusion & 1031 Exchange

[Andrew Moore]

This is an old question and I think I've dug out the ugly answer, but let's see if anyone has more insight.

I purchased and have lived in a duplex for over 2 years. The property has a single tax treatment and single title, and I purchased it in my own name. Since my family runs our rentals through an LLC and this property needed a lot of repairs, my roommates and I have paid a market price rent to my LLC since I bought it and we have treated the property as 100% rental on both sides, claiming all income, expense, interest, tax, and depreciation deductions. Now I am going to sell the duplex.

Does the property qualify for the Section 121 capital gain exclusion at all?  If so, what are the details?  On the other hand, does the entire property qualify for a 1031 exchange?