I just read this great blurb that clarifies what expenses can and cannot be deducted from your gains, along with realtor’s fees and legal fees incurred during the sale of your home.
Here’s a quote straight from the article posted at: http://www.kansascity.com/business/story/551615.html
“Specifically, home staging would be considered “advertising fees” and would fall under the allowable selling expenses.
Second, you may be able to negotiate with your Realtor and add the expense to the commission paid for selling the house. Either way, the same result is accomplished, and the services provided will be considered deductible.
That said, if the home stager recommends the entire interior needs a fresh coat of paint, these selling expenses are not allowable deductions.
Bottom line: Paying for the home stager’s services is deductible, while expenses for repairs, maintenance or permanent redecorating of the house are not.”
Tax time is coming soon, so be sure to keep track of your deductible Home Staging expenses,
Rebecca