Home Staging is Tax-Deductible!

Home staging is tax-deductible!

All of us in the staging business know that education is one of our principle responsibilities and greatest challenges. We know that staging creates value and results in quicker sales, but sometimes homeowners and Realtors need convincing.

There is often a perception that staging is something of a gamble. Realtors are sometimes hesitant to approach homeowners with the suggestion that they spend more money out-of-pocket for something that may or may not produce the desired result. Homeowners who have not hired a professional stager before worry that they may not recoup the cost.

This is especially true of those needing to stage a vacant house.

They think: what if I spend this money and don't see a return on my investment?

That is one reason why the home manager model works so well. Because we don't charge monthly fees to the homeowner when they agree to have their house staged using a home manager.

This situation is completely win-win.

At Showhomes we always point out that the value of staging lies in several key factors. Staged properties sell faster. Faster sales result in higher commissions for agents and reduced carrying costs for homeowners.

We have a long list of success stories to prove it, but when I sit down with a homeowner or Realtor with my proposal of services, well, those benefits can seem awfully intangible.

One of my standard selling points has always been this fact: staging always costs less than a price reduction. Why not pay $5,000 for staging and get an offer close to the price you want? Isn't that better than cutting the price by $20,000 - $30,000?

Well, if you put it that way...

Even so, some people are reluctant.

However, I think that a tax deduction might be seen as a more tangible benefit than those that come under the umbrella of 'reduced carrying costs'. I think I am going to add that to my Showhomes spiel.

In question form, no less: "Did you know that home staging is tax deductible?"

"Why no", they will say - captivated and intrigued, wanting to know more....

"Yes. Home staging is an investment. A legitimate, tax-deductible selling expense."

I'm not a tax expert or a CPA, so I will recommend that they speak to some such professional about the particulars, but I think it is important to inform homeowners and Realtors alike of that benefit/option.

Home staging services paid to a professional can be considered an advertising expense. Staging is still such a new concept to many. I am sure this fact is not widely known.