Write Off Your Office Furniture in 2024 Tax Year: Maximize Tax Savings in 2025
2024 was a great year for businesses to invest in office furniture and equipment. Now, as you file taxes for the 2024 tax year in 2025, you can take advantage of the Section 179 office furniture deduction to maximize your tax savings. This deduction allows businesses to write off a substantial portion of their qualifying office furniture purchases, helping you save money and reinvest in your business.
2024 Overview for Section 179: For the 2024 tax year, businesses can deduct up to $1,220,000 in equipment purchases, with a total purchase limit of $3,050,000. This makes it an ideal time for businesses that have made upgrades to essential office equipment, improved business efficiency, or invested in their future. If you purchased office furniture, equipment, or other qualifying assets in 2024, you can take advantage of these deductions now.
What Qualifies as “Equipment” Under Section 179 for the 2024 Tax Year?
To qualify for the Section 179 deduction for the 2024 tax year, an item must meet the following criteria:
- It must be used for business purposes more than 50% of the time.
- It must have been purchased and put into service in the 2024 tax year (before December 31, 2024).
Common types of business equipment eligible for Section 179 deductions include:
- Office Furniture
- Company Vehicles
- Computers and “Off-the-Shelf” Software
- Office Equipment
Both new and used equipment qualify for the deduction as long as it is “new to your business” and placed in service in 2024. This means you can write off the full purchase price of both new and pre-owned items, reducing your taxable income for the 2024 tax year.
What If the Equipment Was Financed or Leased?
Good news! You don’t have to purchase the equipment outright to benefit from Section 179 for the 2024 tax year. You can finance or lease the equipment, and it still qualifies for the full Section 179 deduction. This makes the deduction even more accessible for businesses that want to avoid significant upfront costs.
How Much Can You Deduct for the 2024 Tax Year?
- The maximum deduction for the 2024 tax year is $1,220,000.
- The total equipment purchase limit for the 2024 tax year is $3,050,000. If your total purchases exceed this amount, the deduction begins to phase out dollar-for-dollar. The entire deduction is lost once your purchases exceed $3,050,000.
How Long Will the 100% Bonus Depreciation Last?
The conditions for Section 179 and bonus depreciation can change from year to year, so it’s crucial to take advantage of this opportunity while filing your 2024 taxes before potential changes in future tax years. For the 2024 tax year, businesses can also take advantage of 60% bonus depreciation on new and used equipment. This can be used in addition to the Section 179 deduction, offering substantial tax savings. However, there’s no guarantee that bonus depreciation will continue at this level in future years, so acting now may provide additional benefits.
Key Takeaways for the 2024 Tax Year:
- Max Deduction: $1,220,000 for the 2024 tax year
- Total Equipment Purchase Limit: $3,050,000 for the 2024 tax year
- 60% Bonus Depreciation available for the 2024 tax year
- Both new and used equipment qualify, as long as it is used in your business during 2024
Important Reminder for Filing Your 2024 Taxes:
To take advantage of the Section 179 deduction for the 2024 tax year, equipment must have been purchased and placed into service during the 2024 tax year. If you made eligible purchases in 2024 but haven’t yet filed your taxes, be sure to include these items to maximize your tax savings. Don’t wait until the last minute—plan your deductions and file now to ensure they qualify.
Final Thoughts:
The Section 179 deduction remains a powerful tool for businesses looking to reduce their tax liabilities and invest in growth. Whether you’re upgrading office furniture, purchasing company vehicles, or investing in new software, the tax savings from Section 179 for the 2024 tax year can provide a significant financial boost.
Consult a tax advisor to ensure your business qualifies for the full deduction and to discuss how Section 179 can work for you.
For more information on Section 179 and to calculate your potential tax savings, visit Section179.org or consult with your accountant.