This is effectively legislation to open up the market to new prospects. 

In your case, changing the property from a rental to your primary residence constitutes a change in use.The depreciation recapture will be calculated based on the fair market value of the building at the time of conversion, not including the land value.Since you're tearing down the existing structure, the entire amount of depreciation taken over the past two years will likely be recaptured, as the building's value at conversion will effectively be zero.The recaptured amount will be taxed as ordinary income, up to a maximum rate of 25% for residential rental property (Section 1250 property).

Hi, I noticed there was new casita/ADU laws that went into effect in Jan 2025.

You may have your lawyer review the contract/property management agreement.

Seriously, all I can tell you is this:Showing you screenshots, and a ton of leads from my website is a direct indication of the effectiveness of what I am telling you. 

Not only will lenders be effected, but borrower credit, business loans, inventory, and auto credit will suffer when those effected have to relocate, find long term replacement housing and their livelihoods and income are destroyed.

My brother, however; is a lawyer and earns around 700k a year.

I'd note you're most likely going to do the whole process over again, so don't be surprised if your lawyer doesn't accept your 14 day notice and will send their own.

Our elected leaders have the unique opportunity to not only help small businesses, keep industries working, combat inflationary pressures in the housing markets and at the same time make housing more affordable for millions of Americans.Several factors contribute to the tight housing market, each influencing the others in a cycle of cause and effect.

TIAHi Dawn, regarding your occupancy, with in effective dynamic pricing policy, you should still be able to beat the market while weeding out “bad” guests.