Yes, you can deduct office furniture from your taxes! That new office furniture you bought in 2017 is tax deductible per Section 179 of the IRS tax code. Whether you redesigned your workspace earlier this year or are thinking about sneaking in a makeover before 2018 hits, here's everything you need to know about writing off business furniture on your 2017 taxes.
Your Business Can Deduct the Entire Cost of Fixed Assets up to $500,000
This deduction can be taken for both new and used office furniture this year so long as the equipment was purchased or financed and installed between January 1 and December 31, 2017. The maximum amount eligible for section 179 treatment under section 179 is $2,000,000, making this an ideal option for small business use.
Section 179 Bonus Depreciation for 2017 is 50%
Bonus depreciation can be taken on spending in excess of the $500,000 but up to the $2,000,000 limit. This allows for an immediate deduction of 50% of those costs for 2017. Please note, however, that this has been modified to 40% for 2018 and 30% for 2019, so choose the timeframe of your purchases wisely. Also consider that while both new and used furniture qualify for a deduction under Section 179, only new furniture qualifies for bonus depreciation.
How to Calculate Section 179 Tax Deductions
Please refer to Section179.org for any and all questions related to making this useful deduction on your 2017 taxes. This informative website has also endorsed a helpful 2017 Section 179 Tax Deduction Calculator powered by Crest Capital which will allow you to determine the deduction and cash savings on your office furniture and equipment purchase, assuming a 35% tax bracket.
Ready for a redesign? Shop NBF office furniture now and take advantage of tax-deductible savings while you still can! Our furniture experts can be reached at (800) 558-1010 to assist with any and all of your office furniture needs.
National Business Furniture is not an expert in tax services. Please consult a tax advisor for tax advice.