This Spirit Being is the real you, the one with Eternal Life.   You are a Spirit Being.   

Your soul (mind, emotions and will) is not saved at the New Birth.   The mind must be transformed Rom 12:2, the emotions must come under the authority of the spirit 2Co 5:7 and your will must be submitted to the Holy Spirit Jam 4:7.    This happens only to the extent that a believer immerses himself in the Word and the Holy Spirit.   

Whoever is born of the Holy Spirit does not commit sin; for his seed remains in him: and he cannot sin, because he is born of the Holy Spirit. 1Jn 3:9 Correct.     The New Spirit is perfect and cannot sin.     The soul and body are still not redeemed and are subject to corruption.     The soul and body will be redeemed at the return of Jesus.

John is talking about the new Spirit Being that we become at the New Birth 1Pe 1:23.   
This statement makes no sense otherwise because he also says this:

If we say that we have not sinned, we make him a liar, and his word is not in us. 1Jn 1:10 no condemnation is not the same as sinless.     To say there is no sin is to lie.

How can there be no condemnation in Christ if we remain sinners?   Because the Lord sees only the New Creature when He looks at us.   The Old Man is dead - crucified with Christ.   

Why do you cry?   Because of the sorrow associated with the things you have said and done and the memories of the things of this world.   

Your mind and mine has memories and information that is not fit for heaven.   So, Christ will clean out all the trash from our minds and finish the renewal process that we have begun in obedience to His Word.   Rom 12:2 Heb 12:1 1Co 15:52,53

You will never completely fix your soul, and your body is going to waste away.   Both the soul and body will be redeemed at the appearing of our Lord.   1Co 15:54

When Christ returns your soul and body will be translated from corruptible to incorruptible.   the Lord will wipe away all tears from your eyes.   Rev 21:4

So, if sinlessness is not our goal, what is?   
Faith

Did Jesus ever talk to His disciples about their sin?   What did He talk to them about?   Faith.   What did He criticize them for?   Little Faith and fear (unbelief).   

When did Christianity become just another form of legalistic Judaism, focused on sin rather than Christ?   

It was going on in Paul`s day.   He referred to it as "preaching another Gospel".   Gal 1:6-9
Yet, we have taken our focus off the Gospel ( Good News) and turned it to sin-stomping and righteousness-building which is futile.   Isa 64:6 Rom 3:22 Tit 3:5

We are the righteousness of God in Christ Jesus.   Period.   Phi 3:9 1Co 1:30 Rom 3:22

To walk and to live by faith is the mark of the prize of your high calling.   Not just passive faith, but active faith - faith that produces works.   Jam 2:18

I tell you that he will avenge them speedily.     Nevertheless when the Son Of Man comes, shall he find faith on the earth? Luk 18:8 The faith that Christ Jesus will be looking for at His return is not just faith in His person, but faith in His Word.      The power of the Holy Spirit is released by faith in His Word.      Jesus commanded His disciples to stay in Jerusalem until they received His power - His Holy Spirit.     But the Holy Spirit only works in us to the extent that we allow the His Word to transform our minds.      Jesus made it clear that only those who lived in His Word were truly His disciples Joh 8:31.      The Holy Spirit loves His weak and impotent children in the same fashion parents love their disabled child.      But just as those parents would wish for their child to be able to pursue life and be successful, so does our heavenly Father.      A powerful life is a Spirit Filled life of pure Heart Faith in the Word Of The Lord.      Now are we the Sons Of The Holy Spirit 1Jn 3:2.

Jesus will be looking for faith when He returns.   

This I say then, Walk in the Holy Spirit, and you shall not fulfil the lust of the flesh. Gal 5:16 To walk is actually to live.     The New Spirit being is the real you.     But you must allow the Word Of The Lord to permeate your mind and heart and you must allow the Holy Spirit to empower you in order to manifest as a Son Of The Holy Spirit.      Such a reorientation will result in you becoming Christ Conscious and no longer Sin Conscious which is the secret to victory over lust.

How do you walk in the Spirit?   You walk by faith in every Word that proceeds from the mouth of God.   

It is the spirit that quickens; the flesh profits nothing: the words that I speak unto you, they are spirit, and they are life. Joh 6:63 This is profound Truth!         → The Holy Spirit makes us alive and keeps us alive.         → The flesh does not help anything.         → It is sustained by the Spirit.         → Our life comes by the Word Of The Lord through His Holy Spirit.      But, the Holy Spirit waits for us to release His power.      We do so by faith in the authority of Christ and His Word and courage to operate as Sons Of The Holy Spirit.

So, fellowship with God in Word and Spirit by Grace through faith:

To the praise of the glory of his grace, wherein he has made us accepted in the beloved. Eph 1:6 Jesus is the beloved.     Mar 9:7 He is beloved of His Father, His own Holy Spirit.      The Grace of the Holy Spirit has made us Accepted In The Beloved.      This is our amazing reality.      In Christ    → we have been given His Holy Spirit    → the Holy Spirit is Eternal Life    → the Holy Spirit is love    → the Holy Spirit holds all our needs What is our part?         → To praise and thank Him    → To draw near to Him    → To submit to Him    → To testify of Him Jesus is Lord!