Why Hallmark Should Create A Card For Duplex Owners

It’s tax time, which, if you’re a Minneapolis duplex owner, is like Mother’s Day; a great time to remember all the wonderful things your investment property has done for you.

Like pay for itself while giving you the tax benefits of depreciation, mortgage interest deductions, and the ability to write off repairs and improvements for any units you don’t live in as business expenses.

Really. April 15th should be National Investment Property Day, with a line of greeting cards, seasonal chocolates, its own line of Peeps…

While I’m not an accountant or tax advisor, I do know many of these presently exhausted individuals occasionally forget to include the category of land improvements in your depreciation schedule.

This oversight can be costly, because at 15 years, this category has the second fasted depreciation schedule. Only personal property can be depreciated faster; over a stretch of five years.

What qualifies as land improvements? Not to be overly simplistic, but any improvements to the land. Like landscaping. Driveways. A sewer line from the curb to the property. A sprinkler system.

I’m sure your accountant can’t field one more call or squeeze one more hour out of her day right now. But an email might serve as a “just in case” nudge before Friday night.

After that, as a thank you to your duplex, you just might want to give it flowers.

Planted in the yard, of course.

And to be depreciated on next year’s Schedule E.