Question 1

What is the MACRS recovery period for furniture?

Accepted Answer

Office furniture and fixtures fall under MACRS 7-year property (Asset Class 00.11). This includes desks, chairs, shelving, cubicle systems, and filing cabinets. The cost is recovered over eight tax years using the half-year convention. Residential rental furniture uses a shorter 5-year recovery period as personal property.

Question 2

Can I use Section 179 for office furniture?

Accepted Answer

Yes. Office furniture qualifies for Section 179 immediate expensing, letting you deduct the full purchase price in the year placed in service. This is especially useful for large office buildouts. The furniture must be used more than 50% for business, and the deduction is limited to your net taxable business income for the year.

Question 3

How is furniture in a residential rental property depreciated?

Accepted Answer

Furniture provided in a furnished rental — beds, sofas, tables, dressers — is classified as 5-year MACRS personal property, separate from the building's 27.5-year schedule. This shorter recovery period accelerates your tax deductions. Keep receipts and an inventory list to substantiate the cost basis for each item.

Question 4

What is the de minimis safe harbor for small furniture items?

Accepted Answer

The de minimis safe harbor lets you expense items costing $2,500 or less per invoice (or $5,000 with audited financials) without capitalizing them. Small furniture items like desk lamps, chairs, or shelving units often fall below this threshold. You must make the election annually on your tax return to use this rule.

Question 5

Does custom furniture depreciate differently than standard furniture?

Accepted Answer

Custom-built furniture uses the same MACRS 7-year class as standard office furniture for tax purposes. However, custom pieces often have a higher cost basis, making capitalization more likely. For fair market value, custom furniture may depreciate faster since resale buyers typically pay less for non-standard pieces that fit specific spaces.

Furniture

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Furniture

Frequently Asked Questions

1What is the MACRS recovery period for furniture?

2Can I use Section 179 for office furniture?

3How is furniture in a residential rental property depreciated?

4What is the de minimis safe harbor for small furniture items?

5Does custom furniture depreciate differently than standard furniture?

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Furniture

Frequently Asked Questions

1What is the MACRS recovery period for furniture?

2Can I use Section 179 for office furniture?

3How is furniture in a residential rental property depreciated?

4What is the de minimis safe harbor for small furniture items?

5Does custom furniture depreciate differently than standard furniture?

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