The Facts about “The Gulf Opportunity Zone Act of 2005” (through 2008)
GO ZONE: What is it? When Does it End?

GO ZONE: When does it end?
On any Properties You Purchase by December 31, 2008 in Above-shown Counties of the State of Alabama

GO ZONE: What is it?

The Gulf Opportunity Zone Act of 2005 provides special tax incentives to spur rebuilding in the areas devastated by hurricanes Katrina and Rita. The act is commonly referred to as the "GO Zone Act."
The Alabama Gulf coast is eligible for federal benefits under the GO Zone Act.

Key GO Zone incentives
Congress created the Gulf Opportunity Zone (GO Zone) to promote reinvestment and recovery. Key provisions are:
• 50% bonus depreciation is available for investments in equipment, non-residential real property or residential rental property.
• Net Operating Loss carry-back for qualifying losses extended from 2 years to 5 years.
• Increased deduction for qualifying tangible personal property for small businesses.
• New markets tax credits increased for qualifying investments in low-income communities.
• Increased qualified rehabilitation credits for historic structures.

How does the GO ZONE work? An example doing GO ZONE math!
AN EXAMPLE:
Buy a Home for $650,000.00
Subtract (generously) 10% for land value, leaving you $585,000.00
You may take depreciation of $292,500.00 in addition to other allowable deductions
If you are in a 35% tax bracket, your NET NET NET savings of money not paid in income taxes would be: $102,375.00. This equates to 37.5% of your purchase price!
GO ZONE: Can I Qualify? EVERYONE CAN QUALIFY!**
The difference is HOW…. Do you have ACTIVE or PASSIVE income?
What does that MEAN TO YOU?
According to the IRS, you must spend 500 hours a year involved in the management of your property. You may HIRE A MANAGER!

**DISCLAIMER:
Most people will qualify for the GO ZONE depreciation. That being said, even though you may qualify, you may have different PASSIVE laws that apply to you. We make no warranties, promises, or guarantees of how this legislation will apply to your specific situation

WHY SHOULD I INVEST?
TO HELP REBUILD THE COAST
Although the storm was devastating, it also opened a new world of opportunity for investors. By investing in the Hurricane Katrina GO ZONE, you are helping to rebuild lives, careers and dreams while investing in the hottest emerging market in the United States!
DON'T MISS THIS WINDOW
OF OPPORTUNITY!

The GO ZONE parameters are clear. To qualify you must:
1. Purchase a GO ZONE qualified property after August 27, 2005.
2. Place your property in service as a residential rental prior to December 31, 2008.
3. Take your 50% bonus GO ZONE depreciation.

Each situation and investor is different! Check with your tax attorney or accountant to see how these rules apply to you

Contact Michelle Beckham for Properties that qualify for the Go Zone (ONE IS LISTED BELOW)

ERA Platinum Properties
Michelle Beckham, Associate Broker
251-709-4558
m.beckham@mchsi.com
www.alarealestate.com

Are you searching for New Construction UNDER $150,000, in Spanish Fort?

For the first time since the neighborhood began the Seller is offering to pay up to $4000 of buyers closing costs and pre-paids on all exisitng inventory. And $2000 towards closing costs for a buyer who wants to start a new home.

• Smooth Ceilings
• Charleston-Style Look & Feel
• Nice-Size Yards, with LAWNCARE INCLUDED!
• Walk-in Closets
• Contemporary, Huge Open Kitchen, with A Lot of Counter Space!
• Garage with Garage Door Openers
• 2" Blinds
• All-Black Appliances including a Refrigerator

This offer is good on all new contracts written by April 30, 2008.

Available inventory includes 7 three-bedroom homes starting at $149,900 located on lots 13, 36, 25 and 28.

These Charleston-Style Duplex Condominiums feature smooth ceilings, walk in closets, huge open kitchen, garage door openers, 2" blinds and refridgerators.The best part is, HOA dues include lawn maintenance and Home Owners Insurance for only $90.00 per month.

For more information check out our web site at www.ChurchillDownsAL.com and view the Virtual Tour - Click Here to View!

We invite you to visit our model home open 7 days a week, or send your buyers out to look. We will register your buyers for you, we are here to help you!

Located on Hwy 31 just 4 miles East of the Eastern Shore Centre'. Heading East on Hwy 31 towards Hwy 59, Churchill Downs is on the right, a mile short of the Highway 59 intersection.

*** Don't forget this offer won't last long so act now. ***

We look forward to seeing you at Churchill DOwns, where The Greatest Amenity is Price!

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Michelle Beckham
ERA Realtor®
www.ChurchillDownsAL.com
e-mail: m.beckham@mchsi.com
telephone: (251) 709-4558