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Are Professional Staging Costs Tax Deductible

By February 3, 2016 No Comments
tax deductables

Is the cost of professional staging tax deductible? This question comes up occasionally because some people would like to offset their capital gains after they sell their house.

There are some items that can and cannot be considered tax deductible when preparing your home for selling. Keep in mind no matter what your selling price is, the current real estate market demands a move-in ready home to entice buyers and increase the overall appeal of your home. Therefore the costs of staging a house are legitimate selling expenses for both primary and secondary homes. The key is that you must advertise the fact either through your Real Estate Agent or by publically announcing that your home has been Professionally Staged.

Additional costs that can be deducted are selling expenses such as commissions, advertising (which includes home staging) legal fees and loan charges or points. In addition, any improvements you have made to the property are also deductions according to the IRS publication 523.tax deductables

Make sure that you have detailed records for any of the improvements that you may have made, for these might be considered deductible also.

So Professional Staging costs can be tax deductable provided that it is used for selling your home; as can decluttering and organizing professional services in preparation for selling a house. If your home is vacant then the rental of furniture is also tax deductible while the house is for sale. If the furniture is rented and the client is still living in the house those rentals are not deductible. Make sure to advertise that the property has been Professionally Staged. A staging consult is not considered tax deductible.

Remember to touch base with a CPA/Attorney to discuss your specific circumstances.

Karen GP

Author Karen GP

Karen GrayPlaisted is the principle owner of Design Solutions KGP. She is a graduate from Pace University and The Fashion Institute of Technology in NYC. Her marketing background and design sense are a perfect combination for home sellers. In the first year she began her staging business, she won the ‘Rising Star’ accolade from RESA, selected from all North American stagers, USA and Canada. In 2016 she won top Occupied Stager in the USA. Karen’s ability to educate and empower clients using simple solutions allows homeowners to transform their spaces with desirable affordable decadence.

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