Is it better for him to sell it now before the 2 out of the last 5 years requirement expires (for the capital gains exclusion) or to just leave it as a rental and sell it much later after he's gone with a stepped up basis.

I do not have good credit or a lot of cash, so I am looking to do a few quick flips to gain investment capital.

-Capital of Alberta-One of the fastest growing cities in economic/industrial development-Just north of Edmonton, are the oilsands (2nd largest oil region in the WORLD) -From now till 2020, there will be billions of dollars invested into oil upgraders.

The financing is way cheaper if its your primary, you will have a payment history that will help your credit score, and if you buy right you can gain some fast equity and either sell after 2 yrs and avoid all capital gains since it was your residence, or take out a home equity line of credit to buy your next deal.

Sometimes you just have to preserve your capital in safer investments and wait for better opportunities.

I am part of a Group called Capital Property Wholesalers.

Personally, I would invest the capital in additional real estate.

Also note that if you take that write off and later decide to use your capital gains avoidance you 'll have to "recapture depreciation".

You can get capital gains tax treatment if you sell it after living in the house for 2 out of 5 years (READ: KEEP AN EXTRA $1000+ FOR EVERY $10,000 IN PROFIT).Make it nice (visit your neighbors that have nice looking houses), not over the top, and take care of the house while you're living in it.

I do not come from a wealthy family non have a substancial amount of capital to invest.