Gulf Opportunity Zone GO Zone

In response to the costliest natural disaster in American history, the US government enacted legislation to provide tax related incentives for the rebuilding and redevelopment of the GO Zone designated regions of Alabama, Louisiana, and Mississippi.  This act is known as The Gulf Opportunity Zone Act of 2005 or GO Zone Act for short.

There are many benefits to the GO Zone Act, but most would argue that the 1st year 50% Bonus Deprecation is probably the best.  What does this mean exactly?  The IRS has written the tax codes in favor of the real estate investor, these tax codes allow investors to depreciate the structure (not the land) of their investment.  If you invest in a GO Zone region the IRS will allow an additional (bonus) depreciation to be deducted in the first year.  Used correctly the GO Zone can be an amazing tax shelter.