Are the expenses of cleaning up your home for sale

Name: Danielle LaPorte
the_email: daniellelaporte at telus.net
My question is: Applicable to both US and Canada
QUESTION: Dear David,
I am the co-owner of Staging Vancouver, a home staging and styling company
that prepares homes to look their best for sale. One of our recent clients
asked us if they could write off the expense of staging services as part of
the cost of selling their home, or as part of re-location costs. Great
question, we think. What's your answer?
kiind thanks,
Danielle LaPorte,
StagingVancouver.com
---------------------------------------------------------------------------
david ingram replies:
I am leaving your name and email live in this response because I think your
service is great and some of my readers may need your services.
However, if a person uses your services to sell their personal residence,
the services are NOT deductible because the profit is not taxable.
However, if one was selling a rental house or a second residence which was
taxable the expenses could be added to the ACB (adjusted cost base) of the
building and would reduce the capital gains tax payable.
That's it for Canada.  In the USA, where there is tax to pay on any profits
over $250,000 per owner after two years, the expenses could be added to the
ACB of a personal residence for sale and would reduce the tax when profits
were very large.
Good luck on an innovative business
david
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