Gozone/depreciation

[denoginnizer]

I have been needing a bigger tractor. My accountant says I could buy one , as long as it is new , and depreciate by 50% the first year since my farm is in the gozone (katrina damaged area).
At the time I didnt have any extra cash so I really didnt even consider doing it but now a gas company has come by and offered me a pretty nice check to rent my gas rights.
So I am considering renting the gas company my gas rights and using the gas money as a down payment towards the tractor.
My question is what advantage, if any , will depreciating the tractor by 50%the first year give me?

I will ask my accountant but he is out of state until next week .

 

[Running Arrow Bill]

Apparently a large tax write-off the first year, then "regular" depreciation the following years. Just my guess. And, if you have or expect a significant IRS tax bill for 2007, the 50% write-off could? have you end up with paying no taxes come April 15, 2008. Just depends on your usual taxable income.