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Tax Credits For Office Furniture

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Tax Credits For Office Furniture

Tax Credits For Office Furniture

Tax season will be upon us soon, and we want to help you prepare to make the most of your options. You may not be aware of Tax Credit Section 179 and how it can be applicable to your business. We’ll explain the details of this credit and what it could mean for your bottom line.

tax credit for office furniture

What is Section 179

This section of the IRS Tax Code was designed to help small and medium size businesses by allowing them to change the way they deduct the purchase of business property. Essentially, it allows you to take the full depreciation deduction in the first year of the purchase instead of spreading it out over the life of the asset. Putting it even more clearly, you can deduct the full purchase price of your qualifying business property from your gross income. Being able to take this deduction upfront makes a huge difference, so definitely take advantage of this benefit for 2019.

What Purchases Qualify?

Some of the business purchases that may qualify for this deduction include:

  • Computers
  • Office furniture
  • Machinery
  • Software
  • Vehicles over 6000lb
  • Other business specific equipment
  • Costs of improvement to the business space like HVAC

Not ready to purchase? Leasing may also qualify for deduction.

Guidelines for Section 179

This tax credit has a lot of perks, but there are some limitations and guidelines that must be followed. Qualifying property must be used for business at least 50% of the time, and the amount of your personal use will reduce your deduction, proportionally. The maximum amount of the deduction cannot exceed $1,000,000. Total business equipment purchase cap is $2,500,000, which truly makes this one of the few tax benefits geared mainly towards small businesses. In addition, “second-hand” or “used” purchases can qualify – not just new. You can get a better value on used equipment or office furniture in Houston, plus it’s more eco-friendly.

While this section of tax code has gone through many iterations over the past few years, the current version has some huge advantages. It just might be the thing to push you over the edge if you’ve been thinking about a new office renovation project. ROSI can help you make that investment wisely, with expert guidance throughout the whole process. An office furniture upgrade is good for business in the long run – and now it’s also beneficial for tax purposes! We offer leasing options as well as recycled cubicles, all of which qualify for this credit. Contact us today for a free consultation.

For more information about Section 179, visit the free informational website here.

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