5 Surprising Facts About Home Staging That Could Affect Your Taxes
Some struggle with understanding the full benefits of professional home staging, and how it can help homeowners gain top dollar on the sale of their home. For those who have not been educated on the benefits, home staging may seem like an unneeded expense instead of a much needed investment. Some ask why can't I stage my own home, or the market is hot so my home doesn't need it. Being a certified home stager I could go on and on with stats of why you need to hire a stager. But what I will do instead is explain how it can help you with an additional tax deduction in the form of a real estate selling expense.
What many people don't know is professional home staging can provide a tax benefit. What tax benefit you may ask? Well, in most cases professional home staging can be deducted as a home selling expense. To the IRS it is considered an advertising expense on the sale of your home. What does that essentially mean? Well lets get to the point, the cost of home staging can be subtracted from the proceeds of the sale of your home.
Here are some points to consider....
1. Professional home staging costs can be considered a home selling expense (advertising expense) for a primary and secondary home. This does not include items the homeowner purchases and will keep beyond the sale of the home.
2. For vacant homes rented furniture is tax deductible. For occupied homes rented furniture may not be tax deductible.
3. If a home is staged and then taken off the market without a sale and relisted, then the home staging expense will not be deductible (IRS will consider the new listing as a separate transaction).
4. Basic home repairs and the usual upkeep of your home is not apart of the advertising expense (even if the stager advises).
5. Be sure you save your invoice from your home stager so you can use the receipt for your taxes.
Please consult with your CPA or a tax consultant in your area for specifics. If you would like to find out more about home staging, be sure to subscribe to our blog.
Until Next Time,
Monique
Sources:
https://www.irs.gov/pub/irs-pdf/p523.pdf
https://ttlc.intuit.com/questions/4022824-can-i-deduct-home-staging-cost
http://claudiajacobsdesigns.com/are-home-staging-costs-tax-deductible/
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