@Cole MitchellYou can certainly sell an asset by an S-corp to the shareholders as long as the sale is at an arms length transactions.The questions is should you.If you plan to acquire it in an S-corp(you will be forgoing the section 121 exclusion which you said you are okay with) if you are going to just sell it within a year - you should just sell it directly from the S-corp.Transferring the property from the S-corp to you personally and then eventually the buyers will cost more in title work.

The rest is taxable.After that, he can do a 1031 since it's no longer a personal residence.If his gain is significantly above the $250k/$500k max, he may rent for couple years and then combine the exclusion with a 1031. 

He Has no ownership rights on the house but does have exclusive listing rights before it goes on the market.

Their teenage and adult children entertained guests on my property's front porch. 

I am seeing more and more probate deals as Baby Boomers, like my parents, pass away and leave property to their adult children.

@Ruben PereiraThen you do not qualify to purchase the home during the Exclusive period.

I'm pretty sure every major city and MSA has at least one attorney who does that kind of work exclusively.

They have a garden there.Its exclusive. 

Or experience getting something rezoned or some kind of exclusion or exception to the zoning?

Is the 121 exclusion a federal tax law or a state tax law.