Re: Staging costs when selling primary residence

The problem is in using vague terms like "staging" and "fix-up". As mentioned in that long-ago thread, by one who is still a valued contributor to this group:

"A taxpayer should properly qualify one's expenditures on their personal residence as either: 1. improvements that increase basis, 2. expenses incurred as a cost of sale, or 3. repairs. "

"New lawn and flowers" would depend on facts and circumstances. I would recommend a set of detailed before-and-after photos to support a position that it is an improvement. "Painting" is almost certainly a repair. "Buying small accessories to spruce up the place" -- will these become a permanent part of the property, or will they be removed upon sale? If the former, and they aren't simply replacing worn-out accessories of similar quality, then I'd call them improvements.

In the classic "staging" scenario, where you a hire a professional to bring in rented furniture and basically do a temporary interior decoration on your home, I would call that an expense of sale.

But it is often recommended that the seller get their own inspection before listing, to eliminate surprises. I'd call that an expense of sale, similar to getting an appraisal.

-Mark Bole

Ed Zollar's explanation, in that thread, regarding "fixing up" expenditures under the old rules is precise and accurate which is typical of Ed.