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.
