ALBANY – If you are in business, chances are you need office furniture. When office furniture becomes necessary to help your business function, this is deemed a business expense that is tax deductible. With that in mind, it is pertinent to know and understand the Section 179 Tax Deduction as it relates to buying NEW office furniture. Furthermore, as an expansion of the new tax law provisions that have gone into effect, businesses can take advantage of Bonus Depreciation on both NEW and PRE-OWNED office furniture solutions as an added benefit.
For a simplified version of the Section 179 Tax Deduction and Bonus Depreciation, we called on Jim Wetzold, Tax Partner at The Bonadio Group, to explain the benefits, rules and tips to take full advantage come tax time.
Things to Know
- Section 179 and Bonus Depreciation allow businesses to write off 100% of their asset purchases (like office furniture)
- Under the new law you get to write off up to $1 million
- Limitations with Section 179 is that it does phase out and you cannot generate a loss
- Bonus Depreciation is a 100% write off under the new law – there is NO phase out – you can use it towards both NEW and PRE-OWNED office furniture so it is generally the better option
- Businesses can take either the Section 179 or Bonus Depreciation
- After you buy your office furniture, you will make an election (Section 179 and/or Bonus Depreciation) when you file your tax returns – you can take both elections – generally Bonus Depreciation will be your best option because it doesn’t phase out and you are allowed to take a loss
Check out this brief video so that without hesitation you can move forward with your office furniture upgrades in 2018.