100% Write Off First Year

[Nicholas Kitchen]

Here is a scenario I would like some Intel on from somebody more educated on the topic than myself.

W2 Employee in the 35% tax bracket, purchased an apartment complex in 2019 for $2.5mm under and LLC. You value add the property, increase NOI and sell it for $3.2mm a year later.

Can you take the full property deduction in 2019? If so, does this also have an effect on your personal taxes as well (will it reduce my adjusted gross income?)

The idea would be to take the full depreciation year one, sell it the following year and 1031 the gain into another property.

Thanks for the guidance!