Section 179 Tax Deduction
Use Section 179 to buy office furniture instead of paying income taxes
Section 179 is a tax code established by the IRS that allows businesses to deduct the FULL purchase price of (qualifying) office equipment purchased (or financed) during the tax year. That means you can deduct the entire purchase price (not exceeding $1,250,000) of the office equipment from your gross income.
Bonus depreciation: 100% for 2025 New and Used Equipment Allowed
Under Modified Accelerated Cost Recovery System (MACRS) Bonus Depreciation has increased first-year depreciation deduction to 100% (vs. 50%) of the adjusted gross basis of qualified property. This goes into effect for assets placed in service after January 1, 2025 and before December 31, 2025. You can use bonus depreciation for purchases of new or used property. Under prior law, you could only use bonus depreciation for new property.
Example purchase with tax break | |
|---|---|
Furniture cost | $50,000 |
First year write-off | $50,000 |
Total 1st year depreciation | $50,000 |
Tax savings assuming rate of 21% | $10,500 |
Net cost after tax savings | $39,500 |
Which assets qualify for Section 179?
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Office Furniture
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Office Equipment
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Automobiles
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Computers and Software
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Machinery
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Tractors
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Trucks