The Solomon Free Money Hour Advises Taxpayers, CPAs The IRS is Paying You to Invest in the GO Zone

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"Never in history has the government helped with revitalization like the GO Zone's incredible tax incentives and 50% depreciation. Many CPA's do not know about this opportunity." By Fred Solomon, Jr.

Hurricanes Katrina, Rita and Wilma that hit the U.S. in the summer of 2005 were considered the most devastating natural disasters our country has faced. Solomon Financial is helping investors learn how to quality for one of the best tax incentives (50% depreciation year 1) in U.S. history.

The catastrophes of Katrina had an enormous impact on the affected regions' economies. In response, the US government passed HR 4440. HR 4440, otherwise known as the Golf Opportunity Zone ("GO Zone") Act of 2005 offers large tax benefits for properties built and placed into service in the GO Zone region after the hurricanes. These tax incentives sanctioned by the US government make real estate investing in the GO Zone very attractive.

Fred Solomon is surprised that many CPA's still do not know or understand this opportunity. There are many people who do qualify for these significant tax savings and may not even know it. One of the number one reasons for desirable areas, like Biloxi, is casinos. There are plans for 22 more casinos. There are already 11 fully operating casinos, including the Hard Rock, IP Casino and the Beau Rivage Hotel and Casino. Each casino brings in over 2,200 new jobs. "I have personally visited hundreds of properties in these areas and can tell you the pros and cons of each area. There is an incredible need for housing. This opportunity not only helps the communities rent affordable housing, this helps the investor save money on the IRS's huge tax incentives," says Mr. Solomon. "When I heard about all the casinos being built and re-built over land instead of water the rest was history."

Kerri Kasem and Lisa Solomon, co-hosts of the Solomon Free Money Hour talk show, visited the Biloxi area and had the opportunity to meet with local residents and politicians, including Mayor A.J. Halloway of Biloxi, Mississippi. Fred Solomon visited Baton Rouge, Louisiana and other GO Zone areas.

The most significant tax incentive is the 50% Bonus Depreciation allowed on newly constructed real estate in the GO Zone in the year of purchase. Real estate investors who qualify could receive a $70,000 tax deduction on a $165,000 purchase. People who would qualify for this tax deduction are as follows: 1. Real estate investors who have taxable income from other real estate they own 2. People who work 750 hours/year in a qualified real estate trade or business such as: a licensed real estate agent, mortgage loan officer, real estate attorney, building inspector, processor at a mortgage company, a property manager (please consult with your CPA to determine if you work in a qualified real estate trade or business). 3. A family or Individual who makes less than $100k/year

Tax savings can be recovered immediately by reducing your estimated tax payments or W-2 withholdings in the year of purchase. Biloxi is being projected to be one of the top 10 emerging and appreciating market over the next 5-10 years. There are other top GO Zone areas as well.

"The Bonus Depreciation can create a net operating loss that you can carry back 2 years to file for a refund of taxes paid or you can carry the loss forward 20 years to reduce your future income taxes," said Solomon. "We have never seen anything like it. Those who qualify for this 50% bonus depreciation write-off by investing in this opportunity can take advantage of the positive cash flow these properties offer on a 30 year fixed mortgage, where the rate and payment will never change."

This is why we look at the GO Zone as a great bonus if you qualify, because not everyone will, said Solomon. "What really excites us about the Mississippi and Louisiana Gulf Coast is that it is one of the best REAL ESTATE MARKETS IN THE COUNTRY, EVEN WITHOUT THE GO Zone tax incentives. Those who do not qualify for the GO Zone at all still realize the excellent real estate investment opportunities with cash flow. "There is not a better place, in my opinion, to buy in the country." The GO Zone goes away in many areas at the end of 2008."

For additional information on how to qualify for the GO Zone, how to get additional incentives for buying property (residential and commercial), contact Fred Solomon or visit

About Fred Solomon:

Fred Solomon, radio host of The Solomon FREE Money Hour Investment Talk Radio with Kerri Kasem can be heard Saturdays 4 pm (PST) on CBS NEWS RADIO/KLSX. Mr. Solomon teaches investment web classes on investing topics like the GO Zone.


Lisa Solomon, Director of Public Relations
Solomon Financial
gozone @
The Solomon Free Money Hour Real Estate Education Talk Radio

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