What is The GO Zone?

In 2005, the U.S. Congress delivered the “Gulf Opportunity Zone Act” which offers incredible tax benefits to real estate investors as part of a revitalization effort in the regions affected by hurricanes Katrina, Wilma, and Rita. When Hurricane Katrina barreled through the Gulf Coast in 2005, roughly 60,000 homes were destroyed and another 50,000 more were damaged.  At the time, approximately 300,000 families were displaced and after a two-year period, over 37,000 people still lived in FEMA provided trailers. From the moment the GO Zone Act was signed into law in 2005, real estate investors have descended upon the region in droves, buying up investment property and taking advantage of the massive, 50% bonus depreciation tax incentive that it currently offers.

*A basic example of what this means to a qualified GO Zone property buyer:

Purchase Price of a GO Zone Single Family Home:     $200,000
Now, subtract the land value of the property (it's non-deductible):  - $20,000
Apply the 50% Bonus depreciation incentive to the remaining:   $180,000
And now you're left with a bonus tax credit of $90,000.

In other words, a qualified buyer could purchase a $200,000 property in a booming market, and the I.R.S. would give them a $90,000 tax deduction from qualified income.

LEGAL NOTICE & DISCLAIMER:

*We make no representation as to a buyer or individual’s eligibility to receive GO Zone bonus depreciation or other tax incentives. You must consult your accountant or tax professional to determine your eligibility. All information contained herein is subject to errors, omissions, and or prior sale.