My husband I have lived in our primary residence in the Bay Area for 10 years, the gain is about 1M right now. we move out in 2016 and rented the whole house out for a full calendar year in 2017, in 2018, we are planning to sell that house and buy another investment property (through a 1031 exchange), do you think my husband and I can still claim the 500K principle residence exemption during that sale, and defer the remaining 500K through that 1031 exchange into the investment house purchase? Thank you very much in advance.
