These do not qualify for 1031 treatment because a 1031 is a sale of investment real estate followed by a purchase of investment real estate.  

I am finding a lot of sellers don't even have proper financial docs prepped for the sale and that causes even more hiccups in the process. 

@Jerryll Noorden we are fundamentally addressing different types of the sales motion with different supporting infrastructure/technology.

You also correctly noted the carryover losses from previous years, which can be used to offset current year profits.Based on your figures, your net income on Schedule E would indeed be $2,000 ($2,000 profit - $0 carryover loss for one property, and -$4,000 loss + $2,000 carryover loss for the other).Your concern about not being able to claim losses due to higher income (> $150,000) likely relates to the passive activity loss rules.

@Justin StraitThis plan is more for someone holding 8 figures of real estate not someone with no real estate.

I have 2 mortgage which is 50% of my W2 income (i donot feel its good idea to give exact figures in open forum).

We moved into a new construction house and have had multiple sewer smell issues but never consistently, one took a year to figure out...basement bathroom someone drilled a hole in the drywall (basement finished after moving In) behind toilet to run cold water line but hit the plumbing stack and cut a hole in it.

They kill your equity and make the sale extremely difficult for anyone.

@David Shelby check with your lender/servicer because you can often Quit Claim the property deed from yourself to a single-member LLC without vilating the mortgage due on sale clause.

You don't need to have this all figured out before making an offer but make sure you're working on getting this team together.