it may make absolutely no difference. to qualify for the home sale exclusion, you must have owned and occupied the property for 730 days out of the five years before the date of sale. you can treat it as a hone sale. there will be no exclusion if you didn't meet the test above and any depreciation you took will be section 1250 recapture. or if you don't qualify for the exclusion, you can ignore the conversion and treat it as a sale of rental property, the gain will be the same and the depreciation recapture will be the same.
one priviso, if you sold at a loss (net basis after depreciation exceeds net sales price), as a personal residence, the loss wouldn't be deductible.
