Deducting New Office Furniture on Your 2017 Taxes

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This years' tax season is quickly approaching, which means its not too soon to start planning. Maybe you're looking to purchase office furniture for your business this year, maybe you're not, but allow us to give you a couple of reasons why its a good idea to make room in your budget to purchase your business furniture in 2017. We'll give a few of our tips for small businesses to deduct new office furniture on their taxes as a business expense.

Is Office Furniture an Expense or Asset?

Bear with us while we get a little heavy on the tax lingo for a bit, but we have some great hidden gems here to save your business some money while spending some money.

Spend Money, Save Money

In case you didn't know, there's this great little section of the IRS tax code called Section 179, which allows businesses to deduct 100% of the cost of fixed assets up to $500,000. So, assuming your business is in the 35% tax bracket, buying $10,000 worth of office furniture in 2017 and deducting 100% of that under Section 179 would yield a tax savings of $3,500. So the net cost is actually $6,500! Good deal, right?

Bonus Depreciation Rule

For businesses that exceed $500,000 in capital expenditures, there is a 50% bonus depreciation rule allowing 50% of the cost of an asset to be depreciated. So, if the $10,000 of furniture was part of capital investments above $500,000, there would be an additional $5,000 of depreciation allowed for 2017 on that furniture.

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It's important to note that the 50% bonus depreciation drops to 40% in 2018 and 30% in 2019, so if you have any inclination to get some new office furniture in the near future, it would save you money to purchase it in 2017 rather than 2018 or 2019.

Calculating Tax Deductions

So now that we armed you with the great tax savings you can use for your business on next year's taxes, how do you start to figure all of this out? Well it just so happens that we have a helpful tax deduction calculator to help you figure out those deductions. You can also find the IRS form 4562 here, which is required to fill out either way you choose to claim your furniture on your taxes.

If we can help you with finding furniture at all, feel free to give us a call at 1-800-933-0053. We'd love to help!

Disclaimer: Please consult your tax advisor for tax advice.

About the Author:

Rachel Howe Rachel is the SEO & Social Media Specialist for and When not working you can find her hanging out with her energetic Corgi, Gambit, and her two young nephews.

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