I did not read this in its entirety, but these catches my eye....however, you should read the whole document carefully
Determine whether the business or rental space still counts as a business space. A space formerly used for business is considered residence space if ALL of the following are true:
1. You weren’t using the space for business or rental at the time you sold the property,
2. You didn’t earn any business or rental income from the space in the year you sold your home, and
3. You used the space as residence space for 2 years out of the 5 years leading up to the sale.
If all of these are true, your business usage DOESN’T affect your gain/loss calculations.
If when you sell the property, it is being rented, that would disqualify statement 1.
If when you sell it and you were renting it in the year you sell it, #2 would also be no.
Thus, the only one meeting this particular test would be 3.
However, there may be other exceptions that I didn't read. Good luck
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
