Commercial Office Furniture & Small Business Tax Deductions

Creating a welcoming workplace starts with getting the basics right, like furnishing and decorating your office. Investing in the right commercial office furniture is more than a functional necessity — it can enhance productivity, efficiency, and employee comfort, while helping to establish a positive corporate culture.

From adjustable ergonomic chairs and high-quality computer desks to versatile storage solutions, every piece can contribute to the well-being of your business and employees. 
But the benefits don’t end there. Purchasing office furniture can help business owners save come tax season. Surprised? That’s right — through section 179, outfitting your office with high-quality furniture can not only boost employee morale but also save you thousands in taxes. 
Understanding how tax deductions work for office furniture is key to maximizing your savings. We’re here to help you explore what office furniture expenses are tax deductible to benefit your workplace and business. 

1. What Office Furniture Expenses are Tax-Deductible?

With tax season upon us, many business owners are thinking of how to reduce their taxable income. Plan your next purchases right now and you’ll be saving money this year. Since commercial office furniture qualifies as a capital expense, it’s considered a long-term asset for business purposes, thus tax-deductible. 

For office furniture expenses to be tax-deductible, the pieces must be deemed functional and essential to business operations; they must be used more than 50 percent in your business. 

Tax-deductible office furniture pieces include:

•    Commercial office desks (executive desks, L-shaped desks, computer desks, and more)
•    Office chairs
•    Conference tables and conference room chairs
•    Reception furniture and cubicles
•    Storage units (filing cabinets, bookshelves, drawers, 

All these office furniture pieces can be deducted through Section 179, which allows a full deduction the same year of purchase. 

As useful as it is to know which items are tax-deductible, it’s also helpful to know which ones aren’t.

Non tax-deductible items include:
•    Consumable office supplies (paper, pens, notebooks, etc.)
•    Personal and decorative pieces (plants, frames, artwork, etc.)
•    Home office furniture

Objects that are quickly consumable, personal, or simply decorative don’t qualify since they’re not considered essential or durable for long-term business purposes. 

2. Section 179: A Game-Changing Tax Deduction for Office Furniture

Before you start shopping, get acquainted with Section 179. Section 179 is a valuable tax provision for businesses of all sizes, but especially for smaller enterprises looking to cut costs when possible. It stipulates that businesses can deduct up to $1,250,000 on qualifying furniture based on the criteria listed in the previous section.

By leveraging this deduction, small businesses can significantly offset the cost of creating a functional and professional workspace, all while maximizing their tax savings. Instead of having to spread out the cost of office furniture over several years through traditional depreciation, Section 179 allows businesses to deduct the full purchase amount in the same tax year. This immediate deduction is a game-changer for cash flow, especially for small businesses that are looking to invest in growth, efficiency, and employee comfort without waiting years to see the benefits. Whether you’re upgrading desks, adding ergonomic chairs, or investing in conference room furniture, Section 179 lets you reclaim the full cost upfront, reducing your taxable income right away. This not only saves your business money on taxes, but also frees up funds for additional investments or operational expenses that might otherwise be tied up in long-term asset depreciation. By taking advantage of this provision, businesses can reinvest those savings into improving operations, hiring new employees, or expanding their services, fostering a cycle of growth that keeps the business moving forward.

For example, if you need to invest $10,000 in office furniture, you can spend it all at once and deduct the entire amount from your taxable income. This will free up cash flow for other investments that could improve your business and workplace.

How does it work? That’s easy – just follow these easy steps:
a.    Purchase new, qualifying office furniture the same year you plan on making a tax claim.
b.    Make sure every piece is installed and put in operation the same year of purchase and of tax claim.
c.    Document everything, from purchase date to cost and business-use percentage. Keep detailed records of all invoices.
d.    Report the deduction on IRS Form 4562

Want to know more? Learn all about Section 179 or consult with a tax professional to discover state-specific rules. 

 
3. Buy the Best Office Furniture

Ready to transform your office and take advantage of potential tax savings? Don’t wait – even if your taxes are put to bed for 2024, you can make decisions now that will improve your office space and your bottom line for 2025. And Bush Business Furniture is the perfect place to start. 
Commercial L-shaped office desks, adjustable standing desks, corner desks, or reception desks — browse desks and tables that just work better (and are tax-deductible!). Complete your office with office furniture sets like cubicles and workstations, office storage, and so much more.
For even more inspiration to help you find the right commercial office furniture solutions for your business, sign up for our newsletter or contact one of our space planning professionals. 

Want expert guidance on selecting the perfect office furniture for your business? Contact our team today for a personalized consultation and transform your workspace into a productivity powerhouse!