What is GO Zone?

The Gulf Opportunity Zone Act of 2005 (H.R. 4440 passed by Congress on Dec. 16, 2005, and signed by President Bush on Dec. 21, 2005) establishes tax incentives and bond provisions to rebuild the local and regional economies devastated by hurricanes Katrina and Rita. The act is commonly referred to as the "GO Zone Act.

"While the entire state of Louisiana is part of the Hurricane Katrina Disaster Area, the provisions of the GO Zone Act apply only to a limited number of Louisiana parishes, defined as the "Core Disaster Area" and referred to as the "GO Zone." However, it is also important to note that the GO Zone reaches far beyond Plaquemines, Calcasieu, Orleans, Jefferson, St. Bernard and the other parishes most devastated by Katrina and Rita.

This means that businesses on the North Shore of Lake Pontchartrain, in Baton Rouge, as far north as Pointe Coupee and the Feliciana parishes, and as far west as Calcasieu Parish are eligible to take advantage of many of the provisions of the GO Zone Act, including tax-exempt bond financing for new investment and favorable tax accounting for both new property and Katrina-related expenses..

The map below shows Louisiana Parishes covered by the GO Zone Act:  

GO Zone Bonus Depreciation:

Under the GO Zone Act, taxpayers are now allowed an additional depreciation deduction equal to 50% of the depreciable basis of qualified Gulf Opportunity Zone property for the first year the property is placed in service. This additional first-year depreciation deduction is calculated after any Section 179 deduction, but before the regular depreciation deduction. The following conditions must exist in order to qualify for this additional depreciation:

• The property acquired must be qualified GO Zone property (see list below).
• Substantially all of the use of the property must be in the GO Zone and be in the active conduct of the taxpayer's trade or business.
• The original use of the property in the GO Zone must commence with the taxpayer on or after Aug. 28, 2005 (but the property may have been used property outside of the GO Zone prior to the taxpayer's acquisition).
• Must be placed in service before Dec. 31, 2008, for residential and non-residential real property and Dec. 31, 2007, for all other property.
• Must elect out if not deducting in the current year.
• No Alternative Minimum Tax depreciation adjustment.

The primary goal of the GO Zone Act is to support the rebuilding and revitalization of the local and regional economies impacted by hurricanes Katrina and Rita.  Why not invest in Louisiana, helping to rebuild this wonderful state, while also receiving tax exemptions?

*Information gathered from GoZoneGuide.com, visit their website to learn more!

GO Zone Property

There are still many properties that qualify for the GO Zone Tax Depreciation which ends in our Area December 2008  (Other Areas such as New Orleans and Alabama Coast will expire in December 2012). 

An example of such a property would be Keller Williams' Agent Sarah Gummow's property in New Roads, LA:

"Absolutely NOTHING like this in New Roads! Just off Main St., this completely remodeled condominium conversion cannot be missed! All brick exterior with lush landscaping. The privacy fence on your patio makes Beau Riviere an inviting place to call home. Enjoy the crown molding in all living areas, the stainless steel appliances, microwave, and granite countertops in the kitchen, exquisite fixtures and ceiling fans. Great up-to-date paint colors that won't go out of style. Don't forget the washer and dryer hookups. There is no comparison."

These condos are listed at an unbeatable price starting at $81,650 for a 1BR/1BA and $119,750 for a 2BR/2BA.  Great GO Zone Property!!!  Visit beaurivierecondos.com to view more pictures!  Listing Agents can be reached at: Sarah Gummow- (225) 939-3598 or Jan Keller- (225) 603-6216.

 Call Me Today at (225) 964-6535 to learn more about how you can invest in GO Zone Property or to preview Condos above!