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I run a daycare from my home but I am planning to sell my home next year. I have heard that if I sell it may qualify as selling my business. Can someone clarify this?
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Here is an article that you might be interested in:
http://tomcopelandblog.com/will-you-owe-taxes-when-you-sell-your-home
And:
https://www.nafcc.org/EightKeyTaxIssues
You might actually owe additional tax if you have not claimed depreciation of the business part in then past.

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what if the home buyers do not want to take over the day care or even if they do there ability to do so may depend on state and local law. so say they don't or can't buy it. then you can't sell it to them.
that would leave you with the sale of your home, there would be depreciation recapture for the portion used for day care . the balance of any gain assuming you owned and live in the house for 2 out of 5 years before sale, would qualify for the home sale exclusion.
there is the possibility that if you have a trade name that has a good rep, you can sell that and certain other day care items to an outsider. but that's a separate sale and I would strongly recommend the use of an attorney. so he can set up the sale to possibly minimize taxes and try to protect you from possible legal issues that could arise in the future.
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I agree that a tax or real estate attorney should be consulted. Another considerations is selling as a business, as pointed out, limits the field of potential buyers and then there are local business zoning laws for business use that need to be considered. Local authorities often ignore for child care run out of residential use areas but are enforced when it is called a "business".
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If you have been filing the business on the Sch C then you may be able to sell the sole proprietorship totally separate from the actual home if this has also been your residence.
I highly recommend you seek local professional assistance BEFORE you do anything.