When it comes time to calculate your taxes, you want to be prepared--and to do that, you need all the right information. Here are a few handy tips to help you take your office furniture into account!
What to Know
Office furniture can make a huge difference in your workplace. It creates a comfortable, welcoming environment that encourages inspiration and efficiency--and, on top of that, it makes your business look welcoming and professional. Office furniture is an excellent investment. It does make your life better (even though it seems incredible that something as simple as a good-sized desk, a comfortable chair, or even some personal items like potted plants, could make that much of a difference).
However, that's not all your office furniture can do for you. Here's what you need to know about how office furniture impacts your taxes!
This is one situation where it's especially helpful to understand tax code. For example, Section 179 allows businesses to deduct the entire cost of fixed assets up to $500,000. If this sounds like good news, that's because it is.
Let's say you spent $5,000 on office furniture and your company is in the 35% tax bracket. Under Section 179, you could deduct 100% of that cost and end up saving $1,750. Suddenly your $5,000 of furniture only cost $3,250!
What happens if you spend more than the $500,000 mentioned in the rules of Section 179? Well, in that case, there are "bonus depreciation" rules stating that 30% of the cost of an asset can still be depreciated.
Interested in updating your workspace with new office furniture (which is great for you and your taxes)? Contact us today!