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Tax Deductible Staging?

By Jaynee Acevedo

Home Stager with Capital Style Home Staging

July 23, 2007 11:21 AM

While I've been "doing this" for years, I've only recently become an Accredited Staging Professional through Staged Homes. So this old design dog knows her way around any spatial, color, or design challenge; with one eye duct-taped shut and a broken arm, but is just learning the ins and outs of the paperwork.

I've heard that Home Staging services are tax deductible as part of your costs of preparing a home for sale. Is this true? Is it a national standard, or something regulated variably at the state level; something crucial to doing business in the DC area.

Which expert can weigh in on this topic? Thanks in advance for what you can do.....

Cheers!

Jaynee

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Cheri Dueker

Transitional Designs, LLC - Saint Louis, MO

Transitional Designs, LLC, Home Staging St. Louis

This question recently came up at a house we were staging. No one knew the answer so I will be watching the answers with interest. Good topic! Thanks

Jul 23, 2007 11:32 AM

Lori Hakeem Oxley

Charles Rutenberg Realty, Inc. - Tampa, FL

I, too, am wondering what the answer to this will be. This is a very relevant topic for us all.

Jul 23, 2007 04:43 PM

Kathy Alexander

GreatStages Home Staging and Redesign - Vancouver, WA

Home Stager Camas WA, Home Staging Southwest WA

While I haven't verified this with my accountant, I have been told by others that staging is tax deductible as a marketing expense when preparing a home for sale. I hope someone here has the definitive answer.

Jul 23, 2007 06:14 PM

Maureen Bray Portland OR Home Stager ~ Room Solutions Staging

Room Solutions Staging, Portland OR - Portland, OR

"Staging Consultations that Sell Portland Homes"

Jaynee,

You can refer clients to IRS Publication 523 as well as advise them to discuss it with their tax consultant. Staging costs are generally tax deductible as part of the marketing expense of selling a home.

Jul 23, 2007 06:34 PM

Marsha Carlton

Project: Staging - Portland, OR

When I sold my home, I was told it depends on the amount of capital gains, whether or not it is deductible. It is always best to check with your financial advisor. I was also advised to save all receipts for improving the home, and ask your suppliers to mark them "improvements for sale", or some such designation.

Jul 23, 2007 07:24 PM

Yvonne Root

rooms b.y. root - Prescott, AZ

Home Stager - Northern Arizona

Here is a blog written by Craig Schiller in March about this subject. His post is worth reading.

Jul 24, 2007 01:37 AM

Yvonne: I found craig's post to be very helpful. I had told a client that I thought it was deductale but nice to have specific information to back me up....Thanks for the reference....This is such an important point to sellt o clinets as my client had not collected reciepts for any of her advertising, etc and when the topic came up, she was shocked that it might e deductable. This type of information adds to our credibility. Thanks

Jul 24, 2007 02:18 AM

Stephanie Heron

Dressing Rooms LLC - Scottsdale, AZ

Weeber - Dressing Rooms

My understanding is that you only have to worry about deductions if you believe you will have capital gains to pay on the sale of the property. Couples are allowed to make a $5000,000 profit on their primary residence ($250,000 if you are single) if they have lived in it for 2 out of the last 5 years. Perhaps with house prices soaring in some parts of the country this is happening more and more often. Definitely pertinent for flippers and investors.

Stephanie

Jul 24, 2007 03:36 AM

Jaynee Acevedo

Capital Style Home Staging - Kensington, MD

Capital Style Home Staging

Maureen: You're exactly right about 523, and I've read it. Like most tax documents and contracts, that still doesn't mean I understand it. I failed math as a child, too.

Marsha: It's coming into focus now that while the IRS deduction is Federal (not State regulated), the pivot point is the sellers financial situation, making it a clear question for THEIR financial/tax guys.

Yvonne: As usual, you've got your finger on the pulse of things, and Craig is the blood in the veins. I bow to you both!

Cheri: You've hit my nail on the head. That is: if Staging is tax deductible, doesn't that give us just one more bullet point on our "Good Reasons to Stage" list? I've only encountered one stager tooting that horn so far, which is what made me wonder (and ask AR).

Stephanie: Thanks for the clarification. Your point seems to be the "bottom line" for sellers.

Jul 24, 2007 03:45 AM

Julie Rieman

All About Redesign Center - Lino Lakes, MN

All About Redesign Center AARC, IDS

Staging is a tax deductible expense as the cost of marketing the property. This applies to the home seller as well as the listing agent that may decide to pay for a staging specialist, as an additional service or closing tool.

Jul 30, 2007 02:10 PM

Hey Julie: Great information. I knew it was for the seller but was unsure of the agent. Excellent!

Jul 30, 2007 02:25 PM

Kathleen Lordbock

Keller Williams Realty Professionals - Baxter, MN

Keller Williams Realty Professionals

You would think that this would make our jobs selling staging easier - right ?

Jul 30, 2007 04:48 PM

I have found that most realtors are not aware of the benefit. I tell everyone I come in contact with and most are surprised. Very good info for your presentation tool kit!

Jul 30, 2007 05:04 PM

Kathleen Garvey

HomeSmart Cherry Creek - Denver - Denver, CO

Denver's Neighborhood Expert - Listings & Sales

Excellent benefit to know!! Great point too!! One more selling point for the stagers!! Hoo-ray!! Regards-Kathleen

Jul 31, 2007 12:56 AM

Karla Davis

Florida Home Staging & Redesign, Inc. - Orlando, FL

Orlando Home Staging Firm

I have had 2 clients so far ask for a copy of all the receipts (they kept items I staged the home with) and used a copy of the invoice for just that. Apparently you can! How much can you use, I have no idea.

Jul 31, 2007 10:28 AM

Karen Dembsky

Peachtree Home Staging LLC, Home Staging in Atlanta, GA - Peachtree City, GA

Atlanta Home Staging

My accountant says it's true, file as a moving expense. Got it on my web site with a clause advising sellers to confirm with their accountant -- don't want to be responsible if rules change or they have a lousy accountant!

Jul 31, 2007 10:34 AM

Rachel Backus

Staged Makeovers - Hudson, OH

www.stagedmakeovers.com

Great information! Thanks everyone.

Jul 31, 2007 11:34 AM

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Jaynee Acevedo

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