Your father's sale did not meet the qualifications for the sec 121 primary residence exclusion. 

@Simon Martinez, I believe you are describing the Section 121 exclusion, which allows for an exclusion of up to $250,000 of capital gains on a taxpayer's primary residence ($500,000 for married couples filing jointly).

I bought a duplex by the children's museum and got BHB Investments as my management company. one side of the property is rented out for $750, and the other side vacant. right after they took control there was a "large leak" in the kitchen which was right under the $250 amount needed for them to notify me about. no pictures, or any other proof; just a bill. okay..after a few months with no showings I looked up the property on Zillow, and trulia, and there were no pictures on the ad. after a discussion, they added pictures.i also told them to cut the rent to $700.after about a month I checked again, and they never lowered the rent. after a discussion, they lowered it to $700..after almost 5 months I've been trying to get them to list ads in LOCAL places (bulletins, news papers, social media, etc) I don't mind lowering the rent a bit more, but I feel like I'm lowering the rent because they are just to lazy to do any real work??

Recently we purchased our first investment property to be used exclusively for Airbnb and other short term rentals.

Otherwise if I just leave him to get with a realtor I'll be left at their mercy and would rather take some control in the matter and further increase my return.If as soon as I inform him I've got him a house about to rehab for him to buy he can either look for a realtor to sell and risk losing house I'm holding for him if realtor doesn't sell in time and I sell elsewhere or...for a non refundable option fee on his house so he knows I'm serious, we agree I keep downgrade house for him til I find a buyer for my option("flex/non-exclusive option"?)

The following is from the SEC's website re: 506(b):“General solicitation” includes advertisements published in newspapers and magazines, public websites, communications broadcasted over television and radio, and seminars where attendees have been invited by general solicitation or general advertising.

In order to qualify for the Section 121 exclusion of capital gains you need to have used the house as your primary residence for 2 of the past 5 years. 

The owner listed the property via newspaper and after reaching out to his Ad and taking an inspector through the building, we agreed on a price.I then called the title company that did a previous deal for me (with a realtor) and told them I was buying a house direct from a seller without realtors.They sent me a boiler plate sales agreement which I filled out and sent to the seller.

I'm here because I recently attended a Seminar that was an "Exclusive Event," hosted for Doug Hopkins - it was known as the "Real Estate Formula."

@Dusty Hulet, he must be dealing with the wrong banks.I own vacation rental property that's exclusively rented on airbnb / vrbo and the banks only care about the last 24 months of rent that I can prove on my federal tax returns.