Special depreciation allowance for GoZone (area affected by Katrina)


P

pearl

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
 
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