Gulf Port Opportunity Zone Act of 2005 – tax benefit for real estate investors
Hi this is Dave Stech again and thank you for listening to what is now the second in a series of videos we’re doing on the GO Zone. And in this case I want to talk about Why the GO Zone. Why is it that I would be interested – or you should be intersted – in investing in the GO Zone, or the Gulf Opprortunity Zone Act of 2005.
It’s basically all about why you would invest in the first place. We call it the investment triad. Any time you’re trying to do anything i- at least in the form of making money – what you’re trying to do is accumulate wealth, generate cash for income, and keep as much of both as you can.
We’ll talk at another time about accumulating wealth and generating cash, but the thing that the GO Zone offers you, above and beyond everything else, is the ability to be able to save on your taxes. That’s that “keeping both” category.
The way that you keep the wealth and the income that you accumulate is by reducing your tax liability, and reducing your personal liability. From a tax liability standpoint, the GO Zone, unlike any other real estate in the 230-year history of our country, offers an unprecedented 50% first-year tax write-off. Let me repeat that. A 50% first-year tax writeoff, which is 14 times more, as a writeoff, then you’ve historially gotten from real estate. It’s only available through the end of 2009, and offers a huge opportunity to not only reduce your income this year, but recoup income taxes paid in the last five years, or mitigate or eliminate the taxes that you’ll pay in the next 15 years. It’s a 20+ year window of tax opportunity, just for buying a single piece of real estate.
So you have to decide. Do I want to pay Uncle Sam, or do I want to legally avoid paying? You choose.
Duration : 0:2:11
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