Home staging - selling expense?

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  • mactoolsix
    Senior Member
    • Apr 2009
    • 544

    #1

    Home staging - selling expense?

    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
    Senior Member
    • May 2005
    • 5456

    #2
    What is home staging?

    Comment

    • Bees Knees
      Senior Member
      • May 2005
      • 5456

      #3
      Never mind. I found the link.



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

      Comment

      • mactoolsix
        Senior Member
        • Apr 2009
        • 544

        #4
        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."

        Comment

        • Zee
          Senior Member
          • Mar 2006
          • 932

          #5
          I would think staging would be selling expense.

          Comment

          • jimmcg
            Senior Member
            • Aug 2005
            • 633

            #6
            Originally posted by 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
            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.

            Comment

            • mactoolsix
              Senior Member
              • Apr 2009
              • 544

              #7
              Thanks to each of you!

              Mike

              Comment

              • kaimana
                Member
                • Apr 2009
                • 90

                #8
                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.
                DIY programs are not a replacement for a good tax pro

                Comment

                • Roberts
                  Senior Member
                  • Sep 2005
                  • 807

                  #9
                  Originally posted by 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.
                  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.

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