Rental Property - Realtor Bill of $38000 to update my property for sale

[zenmster]

Hello, 

My realtor (with my permission!) charged me to get my place ready to sell (painting + new appliances+staging+etc).  All the work is listed on her bill as one line item: $38,000.  How or where do I enter that information? No idea - thank you in advance.  

[TomD8]

This website has a very good - and detailed - answer to your question:

https://www.nolo.com/legal-encyclopedia/faqs-about-reducing-capital-gains-tax-obligation-when-sellin...

As you'll see reading the article, ideally your stager would have provided you with an itemized bill.   

[zenmster]

nope they did not 

[TomD8]

Bottom line:

When you calculate your taxable capital gain:

The stager's fees would be subtracted from your sale proceeds.

Any capital improvements made to the house (but not any repairs) would be added to its cost basis.

Both actions result in a reduction of your taxable capital gain.