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If you are just now learning about the GO Zone and the incredible tax benefits available under this federal legislation, it would be a good idea to bring yourself up to speed quickly! The GO Zone Act is set to expire at the end of 2011, taking with it some of the best tax incentives ever offered with the purchase of real estate. Believe it or not, even with the deadline looming, it is not too late to take advantage of the GO Zone Act, but as you can guess from the expiration date, the time to act is limited.
The Gulf Opportunity Zone Act (GO Zone Act) was passed by Congress in 2005 in response to the damage done by Hurricane Katrina as it passed through Alabama, Louisiana and Mississippi. Originally, the GO Zone Act included counties in Alabama, Louisiana and Mississippi that suffered the worst damage from Katrina and other hurricanes. The scope of the GO Zone Act has been changed since 2005, and the expiration date extended, but qualifying Gulf Coast properties remain available for investors that want to take advantage of the tax incentives.
Residential rental property is generally a qualifying, or eligible, property under the GO Zone Act. Hanover Companies lists a number of different eligible Gulf Coast properties under "Our GO Zone Properties" right here on our website. These properties include single family homes, townhouses, condominiums and more in Mississippi Gulf Coast GO Zone towns such as Biloxi, Gulfport, Bay St. Louis, Ocean Springs and others. However, eligible property must also be placed in service by the date specified in the GO Zone Act, which is the December 31, 2011 deadline for taking advantage of the tax incentives. If you are reading this article, that means the GO Zone benefits are set to expire within the next seven days. Which means if you are reading this article with any interest, now is the time to contact Hanover Companies and learn more!
Though the Act includes a number of benefits to investors willing to pitch in, repair and revitalize the Gulf Coast area, much of the focus is placed on a 50% bonus depreciation for investors who purchase property and place it in service by a specified date. Generally speaking, a $300,000 qualified property purchased and place in service before the end of the current year would leave an investor with a tax credit of $150,000. As any serious investor knows, the tax credit offered by the GO Zone Act is anything but a common tax credit.
This article is a very brief overview of the GO Zone Act, the necessary elements to qualify for tax benefits and the benefits themselves. If real estate in the Gulf Coast GO Zone sounds like the perfect addition to your investment portfolio, so not let this opportunity pass you by - contact Hanover Companies today to speak with an agent and learn more!
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