Qualified Gulf Opportunity Zone Property

In order for property to be qualified Gulf Opportunity Zone (GO Zone) property, it must meet all of the following requirements:

1. The property must be MACRS property that meets one of the following criteria:

• Has a recovery period of 20 years or less
• Is computer software not covered under Section 197
• Is water utility property
• Is qualified leasehold improvement property

• Is nonresidential real property or residential rental property.

2. Substantially all of the use of such property must be in the Gulf Opportunity Zone and in the active conduct of a trade or business by the taxpayer in such Zone.
3. The original use of the property in the Gulf Opportunity Zone must commence with the taxpayer on or after August 28, 2005.

4. The property must be acquired by purchase on or after August 28, 2005, and placed in service on or before March 31, 2011. For qualifying nonresidential real property and residential rental property, the property must be placed in service on or before December 31, 2010.

Note: Legislation extends the deadline for nonresidential real property and residential rental property to December 31, 2010 if the property is located in a county or parish within the GO Zone where more than 60% of the housing units were destroyed by any hurricanes during 2005.