“Is Preparing a Home for Sale Tax Deductible?”

Excerpts from the Times Herald Record article by Claudia Jacobs

tax_deductibleNot too long long ago, friend and staging colleague, Claudia Jacobs wrote about whether or not Home Staging was tax deductible. It was true then and still is . . . here’s why:

  • Home sellers can benefit from preparing a home through organizing and staging as the fees are considered “advertising costs” according to the IRS guidelines.
  • The cost of organizing and staging are subtracted from the proceeds of the sale, which then decrease the overall total realized profit.

It is important to remember: 

  • The home stager and/or professional organizer need to be hired for the sole purpose of selling the home.
  • Organizing and staging is typically what happens after the homeowner has cleaned, painted and made minor repairs. It is these professionals’ services that strategically prepare the home to get it ready for sale.
  • If as part of your services you rent certain items to your seller, which are included in your invoice for your services, and are then retained by you after the organizing and home staging is completed, they will then be tax deductible expenses to the seller.

The bottom line is:  the IRS’s position is that staging costs are a legitimate selling expense for both primary and secondary properties and are, therefore, tax deductible. However, it is important to note that if a house is organized and staged, but then taken off the market, preparation expenses will no longer be tax deductible.

Claudia’s last word on this subject? 

The staging costs must be related to the sale of a home and are deducted as selling expenses. This may not come into play as much in the sale of a principal residence; if certain conditions are met, a single taxpayer can exclude up to $250,000 of gain, and a joint filer can exclude up to $500,000 of gain.”

Organize and stage the home properly from the beginning. Price it right. Get it sold.

See Claudia’s full article here:  http://claudiajacobsdesigns.com/are-home-staging-costs-tax-deductible/

Posted in Real Estate, RSM's Moving Words of Wisdom

Testimonials

"When my aging mother needed to relocate from NJ to FL RSM™ took care of every necessary task from family distributions, donations, and fix-ups! Bernadette Flaim’s home staging expertise made the MLS photos beyond attractive for this older, single-bedroom condo. There were several other apartments for sale in the same building for over a year. My unit received 4 offers in two weeks; 2 over asking price and one for cash. I realized this was not typical for property in my market area but, rather, the outstanding organizing, staging and selling skills of the ReadyStageMove™ Team.

Thank you so much!”

Dorothy D.
Tarpon Springs, FL

2015-12-15T18:02:12+00:00

Dorothy D.
Tarpon Springs, FL

"When my aging mother needed to relocate from NJ to FL RSM™ took care of every necessary task from family distributions, donations, and fix-ups! Bernadette Flaim’s home staging expertise made the MLS photos beyond attractive for this older, single-bedroom condo. There were several other apartments for sale in the same building for over a year. My unit received 4 offers in two weeks; 2 over asking price and one for cash. I realized this was not typical for property in my market area but, rather, the outstanding organizing, staging and selling skills of the ReadyStageMove™ Team. Thank you so much!”

"I have had the good fortune of working with Bernadette Flaim and Jean Marie Herron of Ready Stage Move on countless home preparation, staging, and listing projects.  Not only are they absolute professionals in their respective fields, but they are personally delightful to work with and ensure that the process runs smoothly.  Every property listing in which their services were utilized sold at a higher price and more quickly than other properties on the market.  I cannot recommend them highly enough!"

Harold Bill Graber
Broker Associate
ReMax Villa Realtors

2016-05-16T17:10:05+00:00

Harold Bill Graber
Broker Associate
ReMax Villa Realtors

"I have had the good fortune of working with Bernadette Flaim and Jean Marie Herron of Ready Stage Move on countless home preparation, staging, and listing projects.  Not only are they absolute professionals in their respective fields, but they are personally delightful to work with and ensure that the process runs smoothly.  Every property listing in which their services were utilized sold at a higher price and more quickly than other properties on the market.  I cannot recommend them highly enough!"

“When ReadyStageMove™ came to my client’s home for a “Walk & Talk” recently, this was the first time I had worked with them, so I really didn’t know what to expect. What I did know was that this home needed some organizing and staging help before I was ready to put it on the market. I recommended to the client to hire RSM™ for their Walk & Talk. They agreed and Jean Marie and Bernadette professionally and non-judgmentally went through the house with me and the homeowners. Once the consultation was complete, the ReadyStageMove™ Team put together a thorough, detailed and easy to follow “List of Recommendations.” This document became my client's master checklist, using it as a guide to getting their property decluttered and attractively staged, before the Open House. My clients chose to do all the work themselves following all of RSM’s suggestions and recommendations. I was pleased to report that the house sold quickly and for top dollar!”

Sharon Siracusa
Better Homes and Gardens
Rand Realty
Wyckoff Office
646 Wyckoff Ave.
Wyckoff, NJ 07481

 

2016-06-07T17:50:11+00:00

Sharon Siracusa
Better Homes and Gardens
Rand Realty
Wyckoff Office
646 Wyckoff Ave.
Wyckoff, NJ 07481

 

“When ReadyStageMove™ came to my client’s home for a “Walk & Talk” recently, this was the first time I had worked with them, so I really didn’t know what to expect. What I did know was that this home needed some organizing and staging help before I was ready to put it on the market. I recommended to the client to hire RSM™ for their Walk & Talk. They agreed and Jean Marie and Bernadette professionally and non-judgmentally went through the house with me and the homeowners. Once the consultation was complete, the ReadyStageMove™ Team put together a thorough, detailed and easy to follow “List of Recommendations.” This document became my client's master checklist, using it as a guide to getting their property decluttered and attractively staged, before the Open House. My clients chose to do all the work themselves following all of RSM’s suggestions and recommendations. I was pleased to report that the house sold quickly and for top dollar!”