On December 22, 2017, the US Congress passed H.R.1 (TCJA) otherwise known as The Tax Cuts and Jobs Act. With the passage of this historic legislation, business owners are the big winners (and employees too!) Now is the time to consider upgrading your office furniture as well as planning for the expanding workforce you may have coming in 2018.
How will TCJA affect business?
There is a section in the IRS tax code, call Section 179, this section deals exclusively with business expenses. Under the new revised Section 179 deductions , in 2017, businesses – both big and small, could expense up to $500,000 of the cost of qualified business property, which would be subject to a dollar-for-dollar phaseout above $2 million. Under the 2018 rules, Section 179 deductions for expense have doubled the maximum allowance to $1 million and increases the phaseout threshold to $2.5 million.
Keep in mind, the maximum allowance is still limited to the amount of income from business activity. Additionally, the bonus depreciation: In recent years, the percentage for first-year “bonus depreciation” deductions has fluctuated, complicating tax planning. Now under TCJA, the new law hikes the bonus depreciation deduction from 50% to 100% for five years and then gradually phases out the deduction over the next five years. This bonus deduction has been expanded to include “used” property that otherwise qualifies under this provision – allowing you to write down the “used” office furniture you purchase this year.
So what does that mean to you?
As a business owner, you can now deduct the purchase of new and used office furniture for 2018 off your taxes! (disclosure, we’re office furniture dealers, not accountants, make sure you consult your financial advisor or accountant for more detailed information)
This is a huge incentive for small and medium-sized businesses to invest in their companies. While the economic stimulus acts in the past were only allowing you take a portion of your cost, this new update allows you to take the entire amount.
Now is a great time to start planning your 2018 work space earlier this year! This new deduction will allow you to take both new and used office furniture this year so long as the equipment was purchased or financed and installed between January 1 and December 31, 2018.
Planning for your new office for 2018 with PVI Office Furniture
At PVI Office Furniture, we have new 2018 arrivals from many of our manufacturers such as OfficeSource who have updated their chair, desk and office furniture collections with the latest designs. Not only do we have new office furniture, but we have a great selection of used, closeout office furniture in our showroom in Frederick, MD.
And you will want to check out Facebook, Twitter and Instagram feeds weekly, as we update these platforms with the latest arrivals to our showroom and it pays to make a plan to visit our Frederick, Md showroom – the only PVI showroom in Maryland now open daily with no appointment necessary from Monday – Friday: 8:30am to 5pm.
We have a trained, professional staff of office furniture sales consultants who can walk you through options for your new office furniture as well – they can visit your office or you can visit us in Frederick, Md. At PVI Office Furniture, we make it easy to update your office furniture and we deliver and install as well.
It’s never been a better time to plan for your office furniture upgrade, not only with the new tax bill benefits but saving even more money on the used, closeout and new office furniture options available at PVI Office Furniture.
About PVI Office Furniture
At PVI Office Furniture, we can help you transform your office space into functional office space that works with practical office designs to meet your budget needs. Let our Office Furniture Consultants show you how we deliver on fast, excellent, affordable office furniture designs for every budget. Contact our staff today or visit our Frederick, MD showroom to see our selection of new and pre-owned office furniture. We are a full-service office furniture solution for every size business in the Washington, D.C., Maryland and Northern Virginia region. You can also keep up to date with PVI on our social media platforms for the latest updates on our new and used office furniture arrivals to our Frederick, MD showroom, news about PVI, our latest videos and more : Twitter, Facebook, Instagram, YouTube and LinkedIn.