1031 exchange rules only apply to investment properties, not principal residences.

If you want to convert it to your principal residence, then you need to be able to demonstrate that you live there for the last 2 out of 5 years. It does not need to be continuous, but in the event of an IRS audit, they will look for utility bills, driver licenses, and voter registration at that address.

If you can qualify, they you can exclude from the gain $250k if you are single or $500k if you are married. If you treat the sale as an investment property, the gain will be taxed at capital gains rate with a max of 15% for Federal and whatever the laws are for your state.

I am not an accountant either, but in real estate and familiar with the tax laws in this area. For the best advice, please consult your CPA.