That means:Depreciation recapture under IRC §1245 is triggered at the time of sale.You’ll pay ordinary income tax (not capital gains) on the depreciation taken on these components, including bonus depreciation.Even if the replacement property has similar assets, the IRS treats them as newly acquired, so the prior depreciation is recaptured and taxed.Tax mitigation strategies:New cost segregation on the replacement property to front-load fresh depreciation that can offset income (especially useful if you qualify for REPS or STR material participation).Strategically use suspended passive losses or time the sale during a lower-income year to reduce your effective tax rate on the recapture.Consider installment sale or partial exchange structure, if applicable, to spread gain.Let us know if you'd like our downloadable 1031 exchange, we can send that over to help you build out your roadmap.This post does not create a CPA-Client relationship.

Also I question some of that quote how it's put together - it looks to me like they're not going to replace all the beadboard, but just the part that's ruined with aluminum soffit.

No, you ask the seller to replace it.

These aren’t cosmetic fixes; they’re essential systems that affect safety, functionality, and long-term value.Given the $1,500 plumbing bid and a $16,000 HVAC replacement (plus other minor repairs), asking for a $10,000 price reduction or credit toward closing costs is very reasonable, not greedy.

I need to replace the carpets, add a shower door, and a mini kitchenette.

There are flush mount LED light kits for $10-$20 that replace those “boob lights” in 5-10 minutes max.

Our current workers will be leaving at the end of the month, so we need to more workers to replace the ones leaving. 

With the reverse exchange you close on the replacement property first and the QI holds title of the replacement property until the relinquished property sells.

This prevents the unit from overworking to compensate for accumulated heat.Essential Maintenance Tasks- Check Thermostat Batteries: Weak or dead batteries can prevent your system from operating correctly- Clear Air Vents: Remove any covers and ensure vents are not blocked by furniture or other obstructions- Replace the Air Filter: A clogged filter drastically reduces efficiency.

Just curious why the average roof is replaced every 6 years in DFW.