Can I Write Off Office Furniture on My Taxes?
Learn how to deduct office furniture on your taxes, understand eligibility requirements, and determine whether to expense or depreciate your purchases.
Furnishing a workspace can be expensive, but some of these costs may be tax-deductible. Whether you’re self-employed or running a business, understanding how office furniture expenses fit into tax deductions can help reduce taxable income and save money.
Tax rules vary based on usage, cost, and business structure. Knowing what qualifies and how to claim it properly ensures compliance with IRS regulations while maximizing savings.
Qualifying Criteria
To deduct office furniture, the IRS requires that it be both ordinary and necessary for business operations. This means the furniture must be commonly used in your industry and serve a legitimate business purpose. A desk for a home office or chairs for a client meeting space typically qualify, while decorative items with no functional use do not.
The furniture must be used for business purposes more than 50% of the time. If an item serves both personal and business functions, only the business-related portion is deductible. For example, if a chair in a home office is used for work 70% of the time, only 70% of the cost can be deducted. Keeping records of usage is important in case of an audit.
Business structure determines how deductions are claimed. Sole proprietors and single-member LLCs report expenses on Schedule C of their tax return, while partnerships and corporations deduct costs on their respective business tax filings. If furniture is purchased through a business entity, it must be recorded as a business expense.
Eligible Office Furnishings
Office furniture that qualifies for a tax deduction includes desks, ergonomic chairs, filing cabinets, bookshelves, and conference tables, as they serve a business purpose. Workstations, cubicles, and standing desks also qualify, particularly for businesses with multiple employees.
Technology-related furniture, such as printer stands, monitor risers, and keyboard trays, may be deductible if they support business operations. Storage solutions like locking cabinets for sensitive documents or shelving for office supplies qualify if used for business purposes. Reception area seating and breakroom tables may also be deductible if intended for employees or clients.
Lighting fixtures purchased to improve a workspace, such as desk lamps or overhead lighting that enhances visibility for work tasks, may be included. Modular office furniture, which allows for flexible workspace arrangements, can be useful for businesses anticipating growth or frequent reconfiguration. Partitions that create private workspaces or reduce noise in shared offices may also qualify.
Expensing vs. Depreciation
How office furniture costs are deducted affects taxable income. Some purchases can be fully expensed in the year they are bought, while others must be depreciated over time. The choice depends on the total cost, the business’s financial situation, and IRS rules on asset depreciation.
Expensing allows a business to deduct the full cost of an item in the year of purchase, which can immediately reduce taxable income. Under Section 179 of the Internal Revenue Code, many types of office furniture qualify, provided the total deduction does not exceed the annual limit, which is set at $1,220,000 for 2024. This option is useful for businesses looking to offset a profitable year by deducting large purchases upfront.
If an item does not qualify for full expensing, it must be depreciated over its useful life, as determined by the IRS. Office furniture falls under the Modified Accelerated Cost Recovery System (MACRS) and is typically assigned a seven-year recovery period. Businesses using MACRS can apply different depreciation methods, such as the double-declining balance or straight-line method, to structure deductions in a way that aligns with their financial strategy.
Bonus depreciation allows businesses to deduct a percentage of an asset’s cost in the first year before depreciating the remaining balance. As of 2024, the bonus depreciation rate is 60%, meaning a business could immediately deduct 60% of a furniture purchase and depreciate the remaining 40% over subsequent years.
Records and Documentation
Maintaining thorough records is necessary when claiming office furniture deductions. Purchase receipts should be kept, showing the date, cost, vendor, and a clear description of the item. Credit card statements or bank records alone are insufficient without corresponding invoices specifying the nature of the purchase. If furniture is financed or leased, loan agreements or lease contracts must also be retained.
Beyond proof of purchase, businesses must document how the furniture is used in daily operations. A written log or digital record demonstrating business use can be helpful, particularly for home offices where personal and professional spaces may overlap. Photographs of the workspace, annotated floor plans, or work schedules showing consistent business activity can further support a deduction in case of an audit. For businesses with multiple locations, records should specify where each piece of furniture is placed and how it contributes to business functions.