Tax Deductible Office Furniture Purchases

Most people think the Section 179 deduction is some mysterious or complicated tax code. It really isn’t.

Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.

In years past, when your business bought qualifying equipment, it typically wrote it off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example).

Now, while it’s true that this is better than no write-off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.

And that’s exactly what Section 179 does – it allows your business to write off the entire purchase price of qualifying equipment for the current tax year.

This has made a big difference for many companies (and the economy in general.) Businesses have used Section 179 to purchase needed equipment right now, instead of waiting. For most small businesses, the entire cost of qualifying equipment can be written-off on the 2024 tax return (up to $1,220,000).

The 2024 deduction limit for IRS Section 179 is $1,220,000

The deduction limit for 2024 has been set at $1,220,000 and applied by purchasing new and used office furniture. This allows small businesses to write off any qualifying furniture purchase price during the year they buy it, which can make a huge difference for a small business. You can use this to purchase needed furniture right now instead of waiting.

To Qualify, You Must Act Quickly

To be eligible for a 2024 Section 179 deduction, the equipment must be purchased and put into service by midnight 12/31/2024. It is not enough to simply by the equipment. Please keep supply chain issues and delivery times in mind when buying as there are currently no plans to waive the "put into service" requirement.

2024 Section 179 Example Calculation

Bottom Line: Don’t Hold Off on Your Next Furniture Purchase!

Now is the best time to invest in office furniture. Make sure you do not miss this opportunity to maximize the value of your furniture purchase! And Office Furniture is here to help with an unmatched selection of value priced pre-owned, new and remanufactured office furniture.

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