Hi All,I know this question probably comes up often, but I wanted to ask: if you're using QuickBooks to manage your rental properties, which plan are you using?

Simply gifting him half the property now wouldn’t immediately allow him to claim the exclusion without fulfilling this residency requirement, I don't believe.One thought would be to use a HELOC to pull just enough equity out of the current home and use it to buy a smaller home, or at least the down payment.

@Jacob HavlovickBigger Pockets is a great place to find a real estate tax accountant.A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend finding an accountant who specializes in real estate taxation, business taxation, financial planning and tax planning.You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a accountant willing to work with you throughout the year.

@Arthur Savery, This can be a great game plan called a diversification exchange. 

There is a single family home that was divided and one half has been rented and an ad on small "house" that has also been rented mostly long term.

If you work the valuations out right you can purchase a duplex with your 1031 exchange that will allow you to move into one half immediately again. 

If you don't plan on allowing 4+ cats in your rental in the future you shouldn't start now.

Make sure you check the local ordinances / zoning and talk to the local administrator to see if you can do what you are planning.

Step 3: Compare build plans / specs to decide what you want to build.

In my market, I only have one vendor qualified for appliance warranty work, and the warranty companies paid him half his standard fee for each service call.