Real estate investors are starting to make serious money in the areas effected by hurricane Katrina. Its not just because Baton Rouge was projected to become the fastest growing city. Its not because of the thousands of displaced families that need housing. Its because of the Gulf Opportunity Act of 2005. Here is an excerpt:

-Provides 50-percent bonus depreciation to help businesses rebuild in the Zone. Permits businesses to claim an additional first-year depreciation deduction equal to 50 percent of the cost of new property investments made in the Zone. The additional deduction applies to purchased computer software, leasehold improvements, certain commercial and residential real estate expenditures and equipment. All depreciation deductions (including bonus depreciation) would be exempt from the AMT. The provision applies to property placed in service through December 31, 2007 (December 31, 2008 for real property). Also authorizes the Secretary of the Treasury to grant taxpayers affected by Hurricane Katrina, Hurricane Rita or Hurricane Wilma an extension of time up to one year to place assets in service in the Zone in order to qualify for the bonus depreciation provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003.

THIS INCLUDES REAL ESTATE INVESTMENTS. Real estate investment experts are excited about this law because it means that as a property investor in the Gulf Zone, you get to depreciate the value of the improvements, including the structure, by 50% in the first year. Normally depreciation is spread out over 20+ years. In other words, if you had a structure valued at $100,000 your first year depreciation, or tax deduction would be $50,000. And it is NOT subject to AMT. Do your own research and consult with your team of CPA's and lawyers BUT do check this out. Its a gift from the government!