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Mentor
You're mixing up some different concepts here. Income from your primary home is tax free, period, up to $250k. Sale of investment property can be used in a 1031 exchange to shield income by rolling the proceeds into a new like kind property.
It becomes $500k of gain tax free if you're married.
To be clear, if you buy a new house, move into the new house, and then 2 years later sell your original home, you would not qualify for the capital gains exclusion on your primary residence.
Mentor
AD1 This is incorrect. If you lived in the first house for 2 years and then moved into a new house for 2 years, you could sell the first house and would get the cap gain exclusion.