Did You Know Your Home Staging Costs Could Be a Deduction?
“Did you know that Home Staging costs could be a deduction?” is a question that is invariably followed by silence. No one expects it, not many would have even thought it, but yes, it’s true.
My favorite CPA, Carmine Filippone, of Rudinger Heller and Filippone LLP positions it this way: “In some situations the cost of staging your home will qualify as a deduction when figuring your gain or loss. Every situation is different, so consult your tax professional to see if this applies to you.”
Here are the 2012 IRS guidelines, but from a practical point of view, the types of costs that’d be considered would be painting, repairs, cleaning, staging and rental fees.
TRH suggests clients start a file from Day One and save EVERY receipt>>no matter if it’s $50.00 worth of new cabinet hardware junk removal, or a storage unit. All those runs to Home Depot add up, so keep everything, and let your tax professional sort it out.
Deductible or not, expenses incurred to Stage your house is still money you’re spending, but that it could lessen the sting on your tax liability on the other side sweetens it nicely for many.