Does that qualify for a home office tax exemption?

When you say "we," are you speaking about your business or your personal tax returns, or does your business flow into your personal returns because you file as a sole proprietor?  

If you are going to sell then you must understand the tax implications. 

He isn't a motivated seller.If it will rent for $1900  a month, that means to make money you have to have a payment that includes, principal, interest, prop taxes, insurance, at less than $1400 a month. $190,000 at 3% interest is P&I $801 + prop tax plus insurance a month.

Great point about state income tax, @Jay Hinrichs.

looking to do a quit claim deed .

@Kelly Taylor who doesn’t like tax free atm withdrawals?  

High taxes, a declining population, and an environment that is less than friendly to businesses are important factors to consider.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

 - prop 13 basically fixes the property tax.