A. Edward Gore Realty || Gulf Opportunity Zone

Special Depreciation Allowance

You can take a special depreciaton allowance for qualified Gulf Opportunity (GO) Zone property you place in service after August 27, 2005. The allowance is and additional deduction of 50% of the property's depreciable basis (after any section 179 deduction and before figuring your regular depreciation deduction). The special allowance applies only for the first year the property is in service.
The allowance is deductible for both regualr tax and the alternative minimum tax (AMT). There is no AMT adjustment required for any depreciation figured on the remaining basis of the property.
Qualified GO Zone Property. Property that qualifies for the special GO Zone depreciation allowance includes the following.

Tangible property depreciated under the modified accerlerated cost recovery system (MACRS) with a recovery period of 20 years or less.

Water utility property

Computer Software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been sustantially modified. (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS.)

Qualified leasehold improvement property

Nonresisdential real property and residential rental property.