Staging is an investment not an expense! Simply Staging is a trained team to showcase your home to avoid painful price reductions. Staged homes sell faster than non-staged homes and the investment is far less than the stress of a home sitting stale on the market (costing taxes, mortgage, investment funds) and the PAINFUL price reduction you may incur to sell.
Since a Staging prepares your house for potential home buyers, the IRS considers the service as an advertising expense as long as the home Stager hos been hired for the sole purpose of selling your home. The costs of Staging are subtracted from the proceeds of the sole of the home and decrease the total realized profit. In summary, the IRS’ position is that Staging costs are a legitimate selling expense for both primary and secondary homes and ore therefore tax deductible.
When you reduce a price or just list the house at a lower starting point, that is just a loss. There are no tax benefits for lower pricing or price reductions.
****Always check with your own CPA concerning all tax write offs, tax information and the above information as well.
****IRS Publication 523