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Tax strategy for SFH rent converted to primary residence
I bought my first home as my primary residence in 2018 and then bought a duplex in 2020 which I moved into as a primary residence. The former home was rented out for a year, then we had to sell the duplex and move back into the single family for health reasons.
For 2022 taxes, we used the reasons for selling the duplex as a change in health which meant we were exempt from capital gains (even though we didn't live in for two full years).
However, I now have to move from the SFH due to a change in jobs more than 50 miles away. But because I took the exemption above, I can't take another exemption within two years.
I was curious if there was a way around paying capital gains on the SFH. Specifically, I thought about a 1031, but my next property isn't for business or rental, and the SFH was only used for rental for 1 year.
Thoughts?