Cooper Partnership, a calendar year partnership, made qualifying rehabilitation expenditures to a building that it has used in its business for eight years. These improvements were placed in service on January 5, 2017. The amount of the rehabilitation expenditures credit was $40,000. For qualifying property placed in service before 2018, 100% of the credit was taken in the year the expenses were incurred. If the building was not held for five years, 20% of the credit was recaptured for each year remaining in the five-year window.

Cooper is negotiating to sell the building in either December 2019 or January 2020. The sales price will be $600,000, and the recognized gain will be $100,000. Provide support for the CFO’s position that Cooper should delay the sale until 2020.