Gorham Bypass is set to open in mid-December 2008

After more than 50 long years since city officials first started talking about it, the new Gorham Bypass is set to open in mid-December 2008 according to the Maine Department of Transportation.
Amazingly, the project will finish 6 months ahead of schedule.  Approximately 7,200 vehicles are expected to use the 3.4 mile road on a daily [...]

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What Does Active Really Mean? Two tax traps

The following article was written by our GO Zone tax advisor.
In my opinion, the requirement for the GO Zone property to be own by someone who is active in a trade or business creates an overall potential for investor benefit but contains two traps for the unwary.
Let’s go back to another section of 2006-77:
SECTION 3. [...]

1031 Exchange from a GO Zone property to a non-GO Zone property without the recapture of the bonus depreciation?

The folllowing article was written by our GO Zone tax advisor.
My answer to this question…No!
In December of 2007, there were positions offered in tax literature that stated an IRC 1031-exchange from a GO Zone property to a non-GO Zone property would be allowed.
In my opinion, this position was (at best) aggressive.

1031 Exchange from one GO Zone property to another without the recapture of the bonus depreciation?

The following article was written by our GO Zone tax advisor.
The appropriate use of IRC 1031-type exchanges is a legitimate tax concern as it can materially effect the economics of (1) Developing a portfolio of real estate investments via the deferral of gain and (2) Exiting from real estate investments to a cash position at [...]

What are the benefits for GO Zone Real Estate Investing?

The material benefits of the GO Zone for real estate investing are:
1. Additional first-year bonus depreciation of 50% (fifty percent).
2. Increase in expensing of machinery, equipment and (in some cases) software bought
for use in a business from $105,000 to $205,000 and raised the phase-out level from
$420,000 to $1,020,000
3. Extension of net operating loss carryback to [...]

The MDA Small Rental Assistance Program Pushes Through 1st Round

Finally! The first round of the Mississippi Small Rental Assistance Program (SRAP) apps were due in last November, and after 7 months of back and forth from all the government entities involved, the first checks have started to get disbursed.