I purchased this dog from a pet store. He had been living in a crate all that time. He still deficates in his crate (even if I small size it) and will do accidents sometimes at will in the house. Is there a technique that will break him of this habit. My wife is ready to give him away but that he will only end up in a pound if that happens. Need advice...

No offense but this is one of the many reasons never to buy a dog from a pet store.

You will just have to be patient.
Seeing as how he is 7 months old and never had any training it will be difficult.

Pet store and puppy mill dogs 'self train' themselves to basically go to the toilet anywhere, even in their own bed if they are kept in a small enough crate.

Just go through the normal process.
A firm "no" when yous see him going to the toilet inside and rush him outside so he knows where he should be going.
When he does go outside shower him with praise, make him think that going outside is the best thing ever.

The key now is patience. How often is your puppy going outside? He should be going out after he eats, after he plays, after he naps. Praise him on the spot when he goes potty outside. If you catch him in the house distract him and take him outside to finish. Immediate praise. Very important! It gets better, hang in there.

Potty training a dog takes time.

If the dog does it's business indoors then pick her up, look her in the eyes, and say No in a growly voice.
If the dog does it's business outside act like the dog is the king of the world, it may feel weird at first but trust me it works.

Good Luck!:)

Joy