SPECIAL TAX BENEFIT FOR HOUSTON NEW HOMES!

We have received information that a new IRS tax code regulation described in "IRS Publication 4492" and written following last year's hurricanes; Wilma, Katrina and Rita (Rita brushed the edge of Houston) will allow QUALIFIED owners of a new home built following the hurricanes, to take a one time 50% depreciation allowance. To qualify it must be a business or rental property; it must have started construction after August 28, 2005, and it must be in an approved county.  The counties making up the city of Houston are qualified.

PLEASE, check with your CPA, accountant, or other tax professional who can tell you how this information will affect you, personally.

Example; If you bought a home in the included area (Houston) and within the prescribed time frame for, say; $125,000. and the improvements (not land value) is 75% or $93,750. you could NORMALLY, take a tax deduction under the rules for depreciation allowances of $3,409. each year based on the Govt. rule of 27.5 years of anticipated economic life.

Under the new provision we have been told - We are not lawyers, CPAs or accountants - If you qualify your depreciation in the first year would be $46,875. or 50%. Thereafter, you would depreciate the balance of $46,875. (the other 50%) over 26.5 years or $1,769. per year.

Again, you must verify this interpretation of the new regulation outlined in "IRS Publication 4492" with a tax professional. If it applies to you as described in our example you would recover substantially more than your down payment and closing costs.

Once more; please see a tax professional to confirm this information. We are not tax experts.