a. Depreciation Incentives

There are a few special rules relating to depreciation. Depending on the tax year, you might be able to take advantage of the following:

Avoid the restrictive Depreciation rules on up to $250,000 of New Equipment or Furntiure (NOT REAL ESTATE)  http://en.wikipedia.org/wiki/Section_179_depreciation_deduction

Avoid 27.5 or 39 year depreciation write-off period for Real Estate. There are certain areas in the US that attempt to intice developers to build in their neighborhood by offering faster write-off periods. Some locations in San Diego offer 10 years.

Check out the following:

 More CA Specific renewal community info. If you purchase a property in one of these areas, there are many awesome tax breaks.

Unfortunately, many of the Real Estate incentives expired at the end of 2008 – so be careful with your internet research. Check the sunset date! Consult a professional before making any decisions based on this type of information.