Small Rental Assistance Program SRAP 2nd Round Classes
The MDA (Mississippi Development Authority) will be starting a string of classes for investors who are looking to apply for the 2nd round of the Small Rental Assistance Program (SRAP).
The first of the 16 classes will take place Monday, October 13th in Biloxi, MS and will continue on through October 30th at locations in [...]
The Best GO Zone Cash Flowing Investment
September 9, 2008 by admin
Filed under GO Zone news
Did you pay Federal Income taxes any time in the past 3 to 5 years? Are you expecting to pay any in the future? How would you like to get paid to invest in a positive cash flowing property? Income producing, GO Zone qualified rental property is one of the best opportunities for real estate [...]
Increased Section 179 Expensing
Under IRS Code Section 179, a taxpayer may elect in 2006 to expense up to $108,000 of the cost of qualifying property placed in service for the taxable year. Qualifying property under Section 179 is generally personal property (new and used) acquired or purchased for use in a trade or business. The $108,000 amount is [...]
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.