Could You Include an Office Desk From Your Tax Deductions?

Brown Office FurnitureCompanies should know that they can deduct their office furniture to their tax returns, but there are certain rules for doing this. If you plan to add an industrial office desk you bought from vendors such as Urban95 to your deductible, you should only declare the amount you spent on the item.

Startup firms are also restricted from deducting more than $5,000, or else it would be tagged as a capitalization cost.

Proper Deductions

One of the most common mistakes for tax deductions on office furniture includes an improper identification of items. The risk of an audit from the Internal Revenue Service awaits you if any type of furniture is redundant for your business, or seem to have a vague purpose, yet you still added it to our deductible.

You would need to pay a penalty and cover the underpayment of taxes since the IRS won’t acknowledge personal office furniture as a deductible expense. Some companies may include the design of their office, as long as it helps with their workflow.

Commercial Designs

Non-traditional office designs have emerged due to a need for trendier workplaces, especially among millennial workers who represent a huge part of the working class. Most companies are responding to this common design trend by adopting open-floor layouts and collaborative office spaces.

Certain designs include a large industrial office desk in a common area, where workers can brainstorm ideas and hold meetings like those in the creative industry particularly like dynamic offices within the last three years. This type of design is “marked by usually continuous and productive activity or change.”

Sustainable offices are unsurprisingly a trend as well since the property industry has become more aware of their environmental footprint.

Conclusion

By knowing the right way to declare your office furniture as a deductible, you avoid the risks and maximize its benefits. You can likely stretch your chances of a higher deduction if your office design supports business operations.