What Does Active Really Mean? Two tax traps
July 16, 2008
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. Read more
1031 Exchange from a GO Zone property to a non-GO Zone property without the recapture of the bonus depreciation?
July 16, 2008
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 form a GO Zone property to a non-GO Zone property would be allowed.
In my opinion, this position was (at best) aggressive. Read more
1031 Exchange from one GO Zone property to another without the recapture of the bonus depreciation?
July 16, 2008
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 a future point.
IRC 1031-type exchanges have been a strong tax tool over an extended period of time and it is only logical taxpayers would not like to see it’s use limited to specific geographical areas or the deferral benefits of gain restricted to only a portion of the total gain.
However, this is exactly the position the legislations seem to take and certainly the position which governs most of the IRS’s direction. Read more
What are the benefits for GO Zone Real Estate Investing?
July 16, 2008
The material benefits of the GO Zone for real estate investing are: Read more
What Properties Do Not Qualify for GO Zone Tax Treatment?
June 30, 2008
The following properties do not generally qualify for GO Zone tax treatment: Read more
What tax benefits are granted to a GO Zone?
June 28, 2008
The following post was written by our GO Zone tax advisor.
Tax benefits are granted from governmental taxing authorities so as to direct private enterprise activity towards a desired direction. In the case of real estate investing in the GO Zone, taxing authorities wanted to stimulate investment activity predominately through the granting of early recognition of GO Zone depreciation and providing a barrier for that early recognition from the effects of the alternative minimum tax (AMT). Other benefits were also granted. Read more
What are GO Zones and where are they?
June 26, 2008
The GO Zone Act established geographical areas, called Gulf Opportunity Zones (GO Zone), corresponding roughly with the devastation of Hurricane Katrina, Rita and Wilma. The purpose of the legislation, as it relates to real estate, were to establish tax relief measures so these geographical areas could rebuild their infrastructure in the most efficient and effective manner as determined by the Federal government with the acknowledgement that capital to build the infrastructure needed to come from the private sector. GO Zone Gateway has chosen to focus on the Katrina GO Zone alone since it allows the 50% Bonus Depreciation. Read more
GO Zone Real Estate Investment Opportunities
June 22, 2008
After Katrina caused such destruction along the Gulf Coast, the US Congress passed the Gulf Opportunity Zone Act of 2005 also known as the GO Zone Investment act to support people interested in investing in the region. This Act gives investors the opportunity to write off up to 50% of GO Zone depreciation in the first year. This will allow an individual to possible offset all of their taxable income. This creates an unmatched investment opportunity for investors. Read more
Why GO Zone Real Estate Investment?
June 20, 2008
The GO Zone incentives offered by the federal government provide an accelerated depreciation and huge tax benefits on your investment. It’s highly possible that you will be able to deduct 50% of the cost from your tax liability in the very first year. Besides this, the state of Mississippi is also authorized to offer businesses and entrepreneurs additional financial incentives for the development of housing in the region. Read more
Multiple Factors Boosting Investment in Biloxi Region GO Zone
June 18, 2008
It’s not only casinos that are boosting development in the Mississippi Gulf Coast GO Zone. Most industry experts agree that a number of factors including Katrina, will further growth in the real estate environment here. Besides Katrina, there is the ever growing expansion of casino development, as well as job opportunities generated by a growing defense industry in the region. Add to this, the exodus of baby boomers to warm weather areas in this region, and you have the beginnings of a real estate boom that could easily last for up to 5 years. Read more
