Good news, IRS rules and guidelines now allow luxury home staging investments to be qualified as tax deductible.
We just stumbled upon this very insightful article on the topic of home staging expenses and tax deduction. In addition to the obvious benefits of home staging, better online impressions and making it easier for prospects to visualize all of the home’s possibilities, the staging costs are tax deductible.
Read the full story here, along with some excellent CPA insight. http://www.recordonline.com/news/20170219/claudias-corner-costs-of-home-staging-can-be-tax-deductible
To recap:
Staging costs for primary and secondary homes under this rule are considered to be selling and advertising expenses.
This means when you engage a professional stager for staging services and furniture rentals, these costs reduce the profit of the transaction and you can have less tax liability.
Like any IRS rule, there are fine print details and conditions to be aware of to fully benefit from the deductions.
Tax deductible DO’s:
- Keep good records of any fees and expenses paid to a professional home stager
- This includes fees to prepare your home for buyers
- This includes photography of your staged home
Anything that appears to be an improvement that the current homeowners enjoy or take with them are NOT tax deductible expenses:
- Cleaning costs
- Painting costs
- Repair costs
- Home improvement costs
- Home staging expenses if the listing is taken off the market
From a home stager’s perspective, we see time and time again that home staging investments make a big difference in the speed of the listing’s sale and the contract price. In fact, this small cost from a professional home stager, compared to that of taking a listing price reduction is a much better path and return on your property’s sale.
Home staging can range from a simple consultation covering everything from editing, furniture rearranging, cleaning, repair and cost-effective accessories and visual updates to renting furniture and accessories and art to stage the rooms.
If you’ve got a listing that you want a speedy sale and to get the highest price possible, give us a call or email us https://homefrosting.com/ and we will show you how our expert staging services and furniture rental programs can help you achieve your goals.
