But the IRS has said that it is not appropriate to purchase from a related party when the purchase is an attempt to avoid tax. 

Additionally, the property includes an outdoor swimming pool.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

Are there any tax implications or considerations for Canadian investors investing in the U.S. through an LP?

https://www.biggerpockets.com/forums/51-tax-legal-issues-con...

Once your pre-approval is finalized, evaluate each property by inspecting it, confirming the rehab scope, and making offers based on realistic numbers.Drago

Sell, get the tax savings while you can.

So if you buy a 5 bedroom house and rent the spare 4 bedrooms = you can still sell tax-free under the 121 (you just pay back depreciation) If you buy a duplex and rent 1/2 and live in 1/2.

., I left Anderson for a small firm that will do the actual taxes and then another company that specializes in tax strategy. 

Can you either rent out your current property if there’s been little/no appreciation, or sell it tax free?

It is my understanding that the new owner will have the house at the cost basis of my purchase price, for calculating capital gains taxes or depreciation.For gift tax purposes for you - FMV.For capital gain tax purposes for the recipient - your original basis/purchase price