Special Depreciation for GoZone (area affected by Katrina)

From: pearl <dave_at_denbury.com>
Date: 1 Aug 2006 17:43:19 -0700

Per IRS publication 4492 :The original use of the property in the GO Zone must begin with you after August 27, 2005. Used property can be qualified GO Zone property if it has not previously been used within the GO Zone. Also, additional capital expenditures you incurred after August 27, 2005, to recondition or rebuild your property meet the original use test if the original use of the property in the GO Zone began with you."

The special depreciation allows for a first year depreciation of 50% of the property value. (In my case a condominium used as a rental property.) I am trying to understand the "original use of the property". I acquired it after 8/27/05, BUT it was originally buit in the late 90's. When purchased the condominum was uninhabitable and the entire complex needed to be repared.

Is anyone familiar with the special depreciation allowance for the GoZone, and have any suggestions I need to ask a tax professional?

Thanks
Pearl Received on Tue Aug 01 2006 - 17:43:25 PDT