Hi kwilcoxp Thanks for posting an event question.
If qualified, the home sale gain exclusion of $250,000 (or up to $500,000 for Married Filing Jointly) is most beneficial because it is tax free.
The rental depreciation lowers the cost basis regardless the house is a main home or rental house at the time of sale. The depreciation is re-captured as income at 25% rate when sold.
1031 Like-Kind exchange is for investment property, the profit is tax deferred from the given-up property to the replacement property. Since you intend to use the sale proceeds for your new state residence, the replacement property will not "like kind".
Hope the above helps. Thank you.
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