I didn’t personally do this but I bought a house right after the previous owner put in new laminate flooring and it only took a few months for the flooring to separate at the seams near the kitchen sink and patio doors.

Also, only cap gain can be deferred, not ordinary flip income.there are 10s other requirements needed to properly establish and operate the OZ fund.  

If you did, your recapture would be ordinary income, Not the Unrecaptured 1250 depreciation taxed at the maximum rate of the 25%. 

Added a gravel patio in the back as well.

Tenant shall be charged for all repairs or replacements caused by Tenant, pets, guests or licensees of Tenant, excluding ordinary wear and tear.

No tax benefits in this case at all.Assuming this is an investment property for seller....1) ordinary interest income for the first two years2) Full cap gains and depreciation recapture in year three when paid off

talk to your tax advisor.. creating inventory for sale puts U into ordinary income selling in bulk you can 1031.. run the tax math.

@Paul Young It doesn’t sound like you’ll have cap gains tax, if you haven’t actually owned it for a year….it’s be ordinary income tax. 

You should explain to your lender that he will pay tax on this at his ordinary interest rate.

We have fixed multiple areas of the house including electrical, plumbing, added washers and dryers, added solar powered security lights, built an office, built a patio which increased the value of the house.