Condo Conversion Tax Implications

Does anyone here have advice on how to best handle the following: Bought 3 family for $538K Rehabbed some ( market value for rehab approx $40K ). Plan on selling 1-3 of the units for: Unit #1 $250K Unit #2 $250K Unit #3 $200K Have owned for 10 months. Property is in Massachusetts. Should I keep one?? Will that eliminate the Capital gains if I keep past 2 yr? or just delay the inevitable? Or should I spread out the hit over all 3 units?? Can I?? or am I asking for an audit? Any suggestions would be much appreciated. -MikeD [ Edited by mikedefran on Date 02/10/2004 ]