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I really have read through all the previous posts on this question and think my question's a bit different.

I own a rental property. My current tenants are my parents. I want to free up my equity and use it to buy a primary residence for myself and my fiance. I'm seeking to avoid the capital gains.

My idea is to use the rental exchange procedure to sell the rental to my parents, take the money, by a new rental property then immediately move into it myself. Presumably, after 2 years, it becomes my primary property. If it makes any difference, I can buy the new rental property, rent it to my fiance and then move in.

Is this Kosher?
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