Home staging - selling expense?

[mactoolsix]

Do you consider home staging a selling expense as in "advertising"? I've searched Pub 523, however I find no direct reference to "staging."

A client had a home on the market for over a year - staged the whole time = over $8,000 in staging expenses. Client paid the stager direct vs paying thru the RE agent. It is obviously an expense incurred to produce the sale, however calling it "advertising" doesn't seem to fit.

Thanks,
Mike

[Bees Knees]

What is home staging?

[Bees Knees]

Never mind. I found the link.

http://en.wikipedia.org/wiki/Home_staging

I would lump it in with all other selling expenses that reduce the amount realized upon sale.

[mactoolsix]

When the seller hires an outside company to furnish the home, hang pictures etc. Makes the home more apealing than a vacant house. It is big business in California, and of course the stagers are telling clients "it's a deductible expense."

[Zee]

I would think staging would be selling expense.

[jimmcg]

Do you consider home staging a selling expense as in "advertising"? I've searched Pub 523, however I find no direct reference to "staging."

A client had a home on the market for over a year - staged the whole time = over $8,000 in staging expenses. Client paid the stager direct vs paying thru the RE agent. It is obviously an expense incurred to produce the sale, however calling it "advertising" doesn't seem to fit.

Thanks,
Mike

Definitely yes! Have used staging expenses as a reduction of amount realized on sale. Never had it questioned and if it ever is feel confident it could easily be defended.

[mactoolsix]

Thanks to each of you!

Mike

[kaimana]

May question would be....what happens to the furniture and other deco items once the house is sold...were they rented to the original homeowner or were the purchased from the stager? If they were purchased and the seller keeps them then it doesn't sound like this portion of the staging could be deducted as a selling expense.

[Roberts]

May question would be....what happens to the furniture and other deco items once the house is sold...were they rented to the original homeowner or were the purchased from the stager? If they were purchased and the seller keeps them then it doesn't sound like this portion of the staging could be deducted as a selling expense.

Generally if it is "staged", you pay a stager. That person owns the furniture and the renting of this furniture is implied with your contract. The homeowner isn't involved with the acquisition of the furniture so these factors aren't relevant.