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Section 179 Expense - QIP and a 1031 exchange

  • 1.  Section 179 Expense - QIP and a 1031 exchange

    Posted 01-13-2022 06:48 PM
    Taxpayer will be installing a HVAC in his commercial building . He began the process in 2021 and will be completed very shortly in 2022, In the meantime he is under contract to sell the building in a 1031 exchange. His new property will cost more than what he is selling it for ( or the same).  Can the taxpayer claim section 179 expense in 2022 ?  Does 1031 exchange allow the taxpayer to defer both the capital gains tax and the section 179 recapture from the sale?

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    Rhona Liptzin
    CPA, CFP
    WANK & LIPTZIN, LLP CPAs
    Mineola NY
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