Some sellers still tend to have objections about hiring a home stager, usually because of how much it costs. Well, this tax tip may just turn your no, into yes!
The cost of hiring a home stager varies, but guess what? It is tax deductible! Yep, that's right...according to IRS Publication 523, home sellers can write off selling expenses. A selling expense can be labeled as advertising fees, which includes home staging, as well as commissions, legal fees and points. A home staging deduction can actually save you hundreds, if not thousands of dollars depending on the price of your home.
Now, there is a bit of a gray area, a home staging consultation, which usually initiates the staging process is not tax deductible, because at this point you have not advertised your home as being professionally staged.
If a home stager requests a seller to make necessary repairs in order to sell the home, those repairs can be deductible. Anything from painting to flooring can be deducted as long as you're selling the house.
And for all you Realtors out there this benefits you as well! If you pay for a staging service, you too will be able to deduct the cost. Or here is an insider tip: arrange to have the stager bill the client directly at closing so they can get the tax deduction. The staging will be paid out of proceeds at the closing, so no cash is needed upfront. Then as the real estate agent, you agree to lower your commission by the amount you would've the home stager, this way all the numbers are the same and you look like the hero! The will differentiate you from other agents and bonus will help sell your home faster and for more money! For more information on this contact us at tori@stylishstagers.com or 888.667.6643 to see how we can team up and put your best foot forward. Remember home staging is a necessity to showcase your home so for more home staging tips go to www.toritoth.com and you'll be one step closer to the closing table.
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