rental property remodel and deductions

[Eligrinfeld]

We remodeled our rental condo last year. We will likely be selling it this year. Should I deduct the new assets and repairs as a full deduction (179) or should I do a partial, or just choose the deferral over several years. Not sure which one would be the most beneficial.

[ThomasM125]

If you take the section 179 expensing option, you will likely have to add much of it back in to ordinary income if you sell the condo soon at a gain. Also, it will complicate your tax entries in the year of sale. So it would be simpler to not take the section 179 deduction and that should not have a negative impact on your taxes if you sell your house this year.