As to the buddy I mentioned in Washington state it was the same scenario; he converted tax-free up to their standard deduction but above that he kept within the lowest tax bracket and paid the smallest amount of tax possible.Thank you @Basit Siddiqi for calling me out on this and giving me a chance to address my mistake; it's important people have the correct information.  

While I have the screen print, what worries me is that it provides no information (unlike other filings) to show that I actually filed for my business and that it was correct.  

@Bruce Woodruff can correct me if I am wrong.

Yes, you’re correct.

Some quick googling suggests the answer is yes provided I don't rent it out more than 180 days for the first year, do I understand correctly?

@Wayne Brooks is correct.

Asking in the correct forum will get a better response.Read the RULES!

If there was a clear lease violation sufficiently serious and they were given written warnings to correct the issue and did not then you could probably evict.

I believe subject to transactions, done CORRECTLY, between KNOWLEDGABLE participants, with FULL DISCLOSURE, are typically successful transactions that have benefits for both sides.  

Asking in the correct forum will get a better response.Read the RULES!