Published October 2023 · Last updated August 2026
Every fourth quarter, business owners across Houston and Texas ask us the same question: is office furniture tax deductible? The short answer is generally yes. The more useful answer is that in 2026 the rules are unusually favorable — and one detail catches many buyers by surprise.
Qualifying used and remanufactured furniture can generally be eligible for the same deductions as qualifying new furniture.
The short answer
Office furniture purchased for business use is generally deductible. Businesses may recover the cost through regular depreciation, Section 179, bonus depreciation, or a combination where permitted.
Depreciate it over time. Office furniture and fixtures are generally classified as seven-year property under MACRS, the standard IRS depreciation system. The deduction is spread across those years.
Deduct it in year one. Section 179 allows a business to elect to expense the cost of qualifying property in the year it is placed in service, rather than recovering the cost over seven years.
Bonus depreciation. Qualifying property may also be eligible for 100% additional first-year depreciation, covered in more detail below.
Section 179 limits for 2026
The IRS adjusts these figures annually for inflation. For tax years beginning in 2026:
| Provision | 2026 |
|---|---|
| Maximum Section 179 deduction | $2,560,000 |
| Phase-out threshold | $4,090,000 |
| Bonus depreciation | 100% |
Above the phase-out threshold, the $2,560,000 limit is reduced dollar for dollar by the amount by which qualifying property placed in service that year exceeds $4,090,000.
For many businesses furnishing an office, these limits are far above the cost of the project. As a result, qualifying furniture may be eligible for a full first-year deduction through Section 179, 100% bonus depreciation, or a combination of the two, subject to applicable IRS requirements and limitations.
Bonus depreciation in 2026
Bonus depreciation was scheduled to phase down toward zero. The One Big Beautiful Bill Act reversed that phase-down, providing permanent 100% additional first-year depreciation for qualifying property acquired after January 19, 2025, subject to IRS eligibility requirements.
Per the IRS Form 4562 instructions, the special depreciation allowance is applied after any Section 179 election, against remaining eligible basis. Bonus depreciation also has no Section 179-style spending cap and is not subject to the Section 179 taxable-income limitation — which is why it can be useful where a Section 179 limit applies.
Does used office furniture qualify?
Yes. Qualifying used property can be eligible for both Section 179 and 100% bonus depreciation.
Qualifying used, refurbished, and remanufactured furniture can generally be eligible for the same Section 179 and bonus depreciation rules as qualifying new furniture. The purchase price, however, may be significantly lower.
The same rules generally apply to refurbished seating, pre-owned casegoods, and remanufactured panel systems.
A worked example
Suppose a Houston C corporation buys $200,000 of qualifying remanufactured workstations and refurbished task seating and places the furniture in service in November 2026. Assuming the business qualifies for and elects the full Section 179 deduction, the $200,000 cost could be deducted in 2026. At the current 21% federal corporate income tax rate, that deduction could reduce federal income tax by approximately $42,000, before considering other tax limitations or circumstances.
Timing: what placed in service means
The deduction attaches to the year the furniture is placed in service. The IRS standard is when property is ready and available for a specific use — not the year you ordered it, and not the year you paid the invoice.
This is why lead times matter for year-end purchases, and it is worth confirming a delivery and installation schedule before you sign if the deduction year is part of your planning.
Two limits worth knowing
Business income limitation. The Section 179 deduction is generally limited to taxable income from the active conduct of trades or businesses. Disallowed amounts generally carry forward.
Business use. Where property is used for both business and personal purposes, Section 179 can be elected only if the property is used more than 50% for business.
What to keep for your records
- Itemized invoices showing what was purchased and the price of each item
- Delivery and installation documentation establishing the in-service date
- Proof of payment
- A record of where the furniture is installed and how it is used
Furnishing your office with Office Furniture Connection
We stock remanufactured and refurbished furniture from major manufacturers at our 100,000+ square foot Houston showroom and warehouse — pre-owned inventory, remanufactured workstations, and refurbished seating. Our space planning and delivery and installation teams can also confirm a delivery and installation schedule before you commit, if the deduction year matters to your planning.