1)Yes, this is correct: Others say yes, it was used 100% for business, since the "business use" started in 2013 and we never made it our primary home again.
2) Your basis is $740,000, which is your purchase price. You will deduct the depreciation to get to your adjusted basis. When you converted the home, you were asked for the lower of the adjusted basis or the FMV on the date of conversion. This was used to determine the amount to depreciate only. It does not come into play in any other way.
