Combine Home Sale Gain Exclusion with 1031 Exchange

[Eugene Cheng]

Hello BPers,

Question about combing a home sale gain with a 1031 exchange. My wife and I lived in our prior single family home for 9 years until 2017 then rented it out since (+2 years). The house has appreciated about 800k. We are curious if we can do a 1031 exchange but also claim the 500k home-owner deduction.  For example, assuming it is exchanged to a MFH of the exact same price. Can I get 500K cash in my pocket and only keep 300k gain in the replacement property. If so, how does the sale proceed work with QI?  

I read an article about this https://www.bradyware.com/combine-home-sale-gain-exclusion-with-like-kind-exchange/  but it does not answer to my specific question.

Thank you