I think I have a somewhat similar situation but with possibly some additional complexities, where a taxpayer purchased a rental property under a 1031 exchange back in June 2018 and would like to move into that property later in 2022. They also currently live in half of a duplex, with the other half rented out, but there was no 1031 exchange on that property when it was purchased in September 2018. They are looking at selling the duplex, and then moving into the other single family home that was a 1031 exchange. They weren't planning to do that initially, but began to look at the market and realized they can't afford to get into another home so they are updating that 1031 property with the intent to move in there after the sale of the duplex. Having lived in that duplex as their primary residence, they will claim the 121 exclusion for their half of the property and pay the appropriate cap gain/depreciation recapture on the other half. My question is on the property they plan to move into, if they're able to do so without triggering a taxable event this year? And, if they later sell it after living in it for 5-10 years, could they take the 121 exclusion at that time, with the exception of the required depreciation recapture? What else needs to be considered here?