Question: Leonard owns an apartment complex. During the current year, he pays $14,000 to have all the apartments painted and recarpeted. Gena purchases an apartment complex

Leonard owns an apartment complex. During the current year, he pays $14,000 to have all the apartments painted and recarpeted. Gena purchases an apartment complex during the current year. Before she can rent out the apartments, she pays $14,000 to have them painted and recarpeted.
Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.

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