GO Zone Bonus Depreciation

The Gulf Opportunity Zone (GO Zone) includes areas along the Florida, Alabama, Mississippi and Louisiana Gulf Coast that were devastated by Hurricane Katrina.  One incentive for investors to stimulate rebuilding in these areas is the 50% bonus depreciation for qualified real property.  Bonus depreciation can result in significant tax savings for those taxpayers eligible for the deduction.

The bonus depreciation is a deduction for 50% of the adjusted basis of qualified GO Zone property acquired after August 27, 2005.   To qualify the real property must be acquired by purchase and placed in service before December 31, 2008. 

Eligible investors are generally those qualified as real estate professionals.  To qualify, more than one-half of their personal services performed in a trade or business must involve real property. Also the individual (or spouse) must perform 750 hours of service during the tax year in real property trade or businesses in which the individual (or spouse) materially participates.

Example 1: Tom is a real estate professional and purchases residential real estate with an adjusted basis of $2,000,000.  Tom’s taxable income before depreciation is $1,000,000 and the income tax is $321,575.  Tom’s GO Zone deduction is $1,000,000 (50% of the adjusted basis of the property).  After the deduction, Tom’s taxable income is -0- and the tax savings is $321,575.

Go Zone deductions not fully absorbed in the current tax year may be carried back five years to recover tax paid in prior years.

Today's real estate market can be a challenging environment to earn the returns of the past few years.  We have all heard countless stories (and even a few of us profited ourselves) of pre-construction deals, flipping homes for a profit in less than 30 days and many other strategies of the past.  New real estate buzz terms like "REO" and "Foreclosure" are common among real estate investing circles, but what does it all mean to earning returns?

NCO H Club has built a reputation for buying projects in bulk to pass incentives on to our Investors.  What type of investor would not like assured income for the next 30 months?  This strategy takes the guess work of "The Bottom" of the real estate market in certain areas.  Receiving a payment each month that covers your mortgage while many of expenses are paid for is the focus on NCO H Investment Club.  We are able to run this program for our investors to have Cashflow Positive on a monthly basis to cover 100% of following expenses: Mortgage, Property Taxes, HOA Dues and Fees, Management Fees, Utilities, and maintenance.

Our program is certainly not "Too Good to Be True" as our Investors are utilizing the clubs buying power to receive Cashflow Postive monthly.  Many of the richest people in the world today have made a large percentage of their wealth through real estate and NCO H Club is making real estate investing easier than ever.

The Nation's Leading Condo website, www.newcondosonline.com, has joined forces with the Nation's leading Buyer of opportunistic real estate, Hanover Companies, to offer an exclusive investment program for our NCO H Club Members. It is our goal to cultivate a community of trusted investment club members and offer them the opportunity to invest in the best real estate opportunities in the country during one of the best times to buy real estate.

By leveraging the rich history of Hanover's real estate strategies and New Condos Online's exposure in the condo Market, we have created a community of educated investors who enjoy marketing with like-minded individuals to profit during the current real estate cycle. NCO H CLub is poud to provide people interested in making sense of this real estate market ideas and educational platforms to take advantage of our collective buying power as well as tax credits not known by the general public.

NCO H Club holds regular webinars to keep members informed of new projects as well as top real estate professionals giving their expert advice. Projects sell out fast due to our vast network, but we are happy to discuss the exciting things going on with our club.

Ono Professional Partners and New Condos Online come together to form a strategic partnership in offering a new Gulf Oppertunity Zone (GO ZONE) devlopment -- The Shimmering Sands Sits in the stunning Gulf Coast area of Alabama. The GO ZONE was established to help rebuild the areas in which Hurricane Katrina harmed or effected. From GOZONEGUIDE.com:

"The Gulf Opportunity Zone Act of 2005 (H.R. 4440 passed by Congress on Dec. 16, 2005, and signed by President Bush on Dec. 21, 2005) establishes tax incentives and bond provisions to rebuild the local and regional economies devastated by hurricanes Katrina and Rita. The act is commonly referred to as the "GO Zone Act."

While the entire state of Louisiana is part of the Hurricane Katrina Disaster Area, the provisions of the GO Zone Act apply only to a limited number of Louisiana parishes, defined as the "Core Disaster Area" and referred to as the "GO Zone." However, it is also important to note that the GO Zone reaches far beyond Plaquemines, Calcasieu, Orleans, Jefferson, St. Bernard and the other parishes most devastated by Katrina and Rita."