Have you heard about GO ZONE!! GO ZONE is a federal program that was inacted after hurricane Katrina and Rita in 2005. What this means is that if an investor meets certain qualifications and the purchased property meets certain qualifications the purchaser can receive a 50% tax depreciation the first year of ownership. This is huge but it will end soon. For Baldwin County this incentive will end at the end of 2008
Basically if you are a Real Estate professional of some sort....such as rental agent, Realtor, builder, etc. you may qualify for this tax break. The property must be new and must be used as a rental property. It can not have been put into service before you purchased it. For example...if you and the property both qualify and you purchase a property for $500,000.00 by the end of the year of 2008 in Baldwin County Alabama (some other coastal counties also qualify) you can qualify for a $250,000.00 tax break. You can use this all in the same tax year or you can divide it up over the past 3 years or use toward future tax owed.
This is a great incentive to help investors purchase property along the coast. For more information and more accurate and precise information consult your accountant.
Comments(2)