I have a rental property that has increased a lot in value + about 40K in depreciation. Bought it for about 200K$, can sell for at least 300K$.
Planning on selling it in a year or 2.
We are also planning on moving to another location in town 3-4 years from now, so I was thinking to do a 1031 exchange and buy a place where we would want to live later on, have it as a rental property for about 2 years, and then move in.
Would this strategy work for avoiding a huge tax payment on the gain from the rental sale?