2 years ago Katrina ravaged the Gulf Coast. Due to the vital role the Mississippi plays as a distribution channel for the eastern states, and due to the damage endured by residents, federal gulf opportunity zone incentives were created by the Federal government using a model similar to the one used in New York City after 9-11 to spur investment and redevelopment of the area.

Simply put, federal go zone or Gulf Opportunity Zone incentives allow individuals accelerated depreciation and substantial tax advantages on investments in rehabs, repairs and new home construction in the Go Zone designated areas. In fact, you may be able to deduct 50% of the cost of the property improvements from your tax liability in the first year!

In this scenario, you would be eligible to deduct 50% of the depreciable assets in the first year that you place the property in service, or 50% or $1 million which equals $500,000. That $500,000 deduction would be available to you to offset against taxable income in year 1. Please note this is an example to demonstrate how go zone tax reduction strategies would work and all deductions and exemptions would have to be confirmed by a competent CPA familiar with strategies to lower taxes using go zone investments.

Sounds good. You're probably wondering that's well and good, how would I find a property who would manage it and what would be my monthly cashflow?

Here's where it gets better and we can assist. We have a team in place to provide you with a hassle free brand new real estate investment opportunity in the Biloxi Gulfport area. We manage all aspects of the investment including property management, financing, providing access to our expert go zone investment accountants as well as a team to assist you in resale once you are ready to sell the property.

Assuming you don't need all the go zone deductions up front, the law allows you to take the tax losses back five years or carried forward 15 years. So if you didn't have a tax shelter in the past and paid an exorbitant amount of taxes in lets say 2004, you would file an amended return and apply the go zone benefits to reduce your tax liability, get a tax refund check and a thank you for helping rebuild the go zone.

This is one of those few times that all investment factors align perfectly. If you live in most of the coastal parts of the U.S., it's been a while since you heard the term monthly positive cash flow and appreciation. It's time you gave this opportunity a serious review.