Yes. Section 179 lets many businesses deduct the full price of qualifying office furniture in the year they put it to use. That can lower your tax bill, and both new and used furniture can qualify. Ask your tax advisor how it applies to you.
What Is the Section 179 Deduction?
Section 179 is a tax rule for small and mid-sized businesses. It lets you deduct the full purchase price of qualifying equipment and furniture in the year you place it in service. Without it, you would spread the deduction over several years. Office furniture is usually depreciated over seven years.
Here is a simple example. Say your business pays a 20 percent tax rate and buys $50,000 of new office furniture. If you deduct the full amount, you save about $10,000 in taxes right away. That lowers the real cost of the furniture to about $40,000.
Section 179 has a yearly deduction limit and a spending cap. Congress and the IRS change these amounts, so check the current numbers with your tax advisor before you buy.
Does Used Furniture Qualify for Section 179?
Yes. Both new and used furniture can qualify. That gives you room to fit any budget. Our used office furniture ships in days from our stocked Columbus warehouse, which helps when a year-end date is close.
What Furniture Usually Qualifies?
Most items you use to run your business can qualify. Common examples include:
- Desks and workstations
- Office chairs and ergonomic seating
- Conference tables and meeting furniture
- Cubicles and panel systems
- Filing cabinets and storage
The business must use the furniture for work more than half the time. The deduction also cannot be larger than your business income for the year. Some businesses can carry the extra amount forward. Your tax advisor can explain the rules for your situation.
Other options may also help, such as bonus depreciation. These rules change often, so a quick call with your accountant before you buy is worth the time.
Why Should You Plan Before Year End?
The furniture must be in service by December 31 to count for that tax year. Delivery and installation take time, so do not wait until December. Here is how to plan well:
- Start early so delivery and installation finish on time.
- Budget for the full cost, including delivery, installation, and removal of old furniture.
- Choose a vendor who plans layouts, delivers, and installs.
- Ask your employees what they need. Their input leads to better choices.
How Can New Furniture Improve Your Workspace?
A tax break is a good reason to act. A better workspace is an even better one. Focus on three ideas:
- People first: Ergonomic chairs and adjustable desks help your team stay comfortable and focused.
- Flexibility: Modular furniture is easy to reconfigure for new teams and work styles.
- Natural touches: Natural light, plants, and natural materials make a space feel calm.
Why Does Comfortable Furniture Help Your Team?
Ergonomic furniture supports good posture and reduces strain. When people feel comfortable, they can focus longer. Quality furniture also shows employees that you care about their well-being, which helps morale and retention.
Plan Your Year-End Purchase
We offer a free 3D drawing of your office layout before you buy. Our team also delivers and installs everything. Shop our new desks, request a quote, or call Capital Choice at (614) 332-1828.
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