Any company has to spend money on office furnishings, but those expenses may add up quickly.  Thankfully, company owners may claim office furniture expenditures as a tax deduction since the IRS sees it as an essential part of operating a business. Claiming this deduction, however, is subject to a number of regulations.

Does Your Company Have Tax Deductible Office Furniture?

There are certain restrictions, but generally speaking, you may claim office furniture as a tax deduction.  To begin, in the first year of operation, a new firm is only allowed to deduct up to $5,000 in furniture costs.  If it’s more than that, it can be a capital expense that has to be depreciated over a longer time.  Second, you can’t just utilize the furniture for personal use; it has to be very essential to your company’s activities.  The purchase of a high-end entertainment system for the break room is not deductible, but a nice desk chair is.  Keep your personal preferences and work demands separate at all times.  To find out whether a certain piece of furniture is eligible for a deduction, talk to your accountant if you’re not sure. So can you claim furniture on your taxes? Here are the ideas for you.

Office Costs at Home

A lot of people who own small businesses do not even require an office since they can do it all from the comfort of their own homes.  A percentage of the cost of furnishing a home office, including computers, is deductible for these people according to the Internal Revenue Service.  The dedicated workspace has to be utilized for business purposes alone and on a regular basis to be eligible.  That extra bedroom that’s utilized for documents every once in a while doesn’t count. 

Extra Business Expenses for Tax Deduction

Office furniture is deductible for many companies, but it’s hardly the only tax break that small company owners may take advantage of.  Resources such as “17 Tax Benefits You Can Take Advantage of as a Small Business Owner” provide a more thorough outline of possible deductions.  Travel for business purposes, marketing expenditures, and staff perks are all itemized in this article.  Your taxable income and the bottom line of your company may be improved by fully using all deductions that are available to you.

Conclusion

Rules and regulations pertaining to taxes are subject to constant modification.  Seek the advice of an experienced accountant if you are confused about or have any issues about company deductions.  An accountant can go over your individual circumstances, tell you whether business deductions are applicable, and check that your taxes are filed appropriately.  Seeking expert advice may alleviate anxiety and help you find deductions you might have overlooked.