As a small business owner in the USA, you can save thousands of dollars in taxes by taking advantage of Section 179 of the IRS tax code, which allows you to write off business-related spending on office furniture, including your brand new standing desk.
But how exactly? This article will walk you through purchasing standing desks for your company from FlexiSpot and how you can benefit from tax deductions. By the end of this guide, you should feel knowledgeable enough about Section 179 to make informed decisions that will improve your employees' well-being and positively impact your bottom line.
Understanding Section 179
As a small business owner, you may be familiar with various tax deductions and credits that can help reduce your overall tax liability. Section 179 is one such provision in the U.S. internal revenue code that offers significant benefits for businesses looking to invest in office equipment, such as standing desks.
Let's delve into the details of Section 179 and its implications for small businesses.
What is Section 179?
Section 179 is a tax code encouraging businesses to invest in essential equipment and stimulate economic growth.
Under this provision, eligible small businesses can deduct the total purchase price of qualifying office equipment, including standing desks, from their taxable income in the year of purchase rather than spreading the deduction over multiple years through depreciation.
Immediate Expense Deduction
Unlike standard depreciation, which gradually deducts the cost of an asset over its useful life, Section 179 allows for an immediate expense deduction. This means that the entire cost of qualifying office equipment, up to a specific limit, can be deducted in the year of purchase. As a result, you can enjoy the benefits of the equipment right away while lowering your taxable income for that tax year.
Significance for Small Businesses
Section 179 is particularly advantageous for small businesses with limited financial resources.
By providing an immediate expense deduction, the provision offers a strong incentive to invest in necessary office equipment, such as ergonomic standing desks from FlexiSpot. This can lead to improved employee productivity, health, and well-being, ultimately contributing to the growth and success of your business.
Eligibility for Section 179 Deduction For Standing Desks
To qualify for the Section 179 deduction, the office equipment, including standing desks, must meet specific criteria:
1. The equipment must be purchased, financed, and used within the same tax year you wish to claim the deduction.
2. The equipment must be used more than 50% of the time for business purposes.
3. Equipment should be considered essential for your business operations.
Deduction Limit and Phase-out
While Section 179 offers a generous deduction, there are limits to the total amount you can deduct. As of the last update, the maximum deduction limit was $1,160,000 for qualified equipment purchases. Additionally, the total cost of equipment purchases eligible for the deduction is phased out if the total exceeds $2,890,000.
Checking with the IRS or a tax professional for the most current deduction limits is essential.
Key Takeaways
1. Section 179 presents a valuable opportunity for small business owners in the USA to invest in office equipment like standing desks while enjoying substantial tax benefits.
2. By taking advantage of this immediate expense deduction, you can enhance your workplace environment and reduce your tax liability, freeing up resources to reinvest in your business's growth.
3. Before making any purchasing decisions, we recommend consulting with a qualified tax advisor or accountant to ensure you meet all the requirements and fully leverage the benefits of Section 179.
Qualifying for Section 179 Deductions with FlexiSpot Standing Desks:
Now that you understand the benefits of Section 179 let's explore how you can qualify for tax deductions when purchasing standing desks from FlexiSpot. FlexiSpot offers a diverse selection of high-quality standing desks that are ergonomic, functional, and eligible for tax deductions under Section 179. Here's what you need to consider to ensure your standing desk purchase meets the necessary criteria:
Primarily Used for Business Purposes
To qualify for the Section 179 deduction, the standing desks you purchase must be primarily used for business purposes. This means that the desks should be intended for work activities, enhancing productivity and well-being in the workplace.
Note: there is no requirement for a standing desk to be primarily located in a place of work – business related purchases to facilitate remote working in the home will also qualify. However, while occasional personal use is acceptable, the primary use of the equipment must be for business-related tasks.
Essential for Employee Productivity and Well-being
FlexiSpot's standing desks are designed to promote a healthier work environment, allowing your employees to switch between sitting and standing positions. When selecting standing desks for your small business, consider how they can positively impact your employees' well-being, reduce fatigue, and boost productivity. Emphasize the ergonomic features and health benefits to ensure they are essential for your employees' comfort and performance.
Documenting Your Purchase and Use
To support your claim for Section 179 deductions, it is crucial to maintain proper documentation of your standing desk purchase from Flexispot. Keep receipts, invoices, and any other relevant paperwork as transaction evidence. Additionally, maintain records of how the standing desks are utilized within your business for business-related activities.
Consult with a Tax Professional
While Flexispot offers a selection of standing desks that meet the criteria for Section 179 deductions, it's always prudent to seek advice from a tax professional or accountant. A tax expert can help you determine the eligibility of your standing desk purchase and guide you through claiming the deduction correctly on your tax return.
Key Takeaways
1. FlexiSpot makes it easy for small business owners in the USA to qualify for Section 179 deductions when purchasing standing desks for their workplaces.
2. By ensuring that the desks are primarily used for business purposes and are essential for employee productivity and well-being, you can confidently claim the deduction and enjoy immediate expense benefits.
3. Remember to maintain proper documentation and consult a tax professional to maximize this advantageous tax provision.
4. Investing in Flexispot's ergonomic standing desks not only supports your employees' health and productivity but also contributes to the financial success of your small business.
Navigating State Sales Tax and Exemptions:
When purchasing standing desks for your small business, understanding state sales tax and potential exemptions is vital to ensure compliance with local regulations and maximize cost savings. Here's what you need to know:
Destination-Based Sales Tax
In most cases, sales tax is determined based on the destination address where the standing desks are delivered. This is known as destination-based sales tax sourcing. When you purchase Flexispot, the sales tax rate will be based on the delivery location. It's essential to verify the applicable sales tax rate in the specific state or jurisdiction where the standing desks will be delivered.
Curbside Pickup or BOPIS
If you choose curbside pickup or buy online pickup in-store (BOPIS) as your preferred method of receiving the standing desks, the sales tax may be based on the seller's address instead of the delivery location. This is known as origin-based sales tax sourcing.
Exemptions and Resale Certificates
Certain businesses may qualify for sales tax exemptions, which can further reduce the cost of purchasing standing desks. To make the most of such exemptions, you may need to provide a Resale or Exemption Certificate, depending on your business's nature and activities. For example, if you run an office furniture retail store or an online store specializing in office equipment, you might need to submit a Resale Certificate. Government entities, schools, non-profit organizations, and other eligible entities may require an Exemption Certificate.
Consult with a Tax Professional
Navigating state sales tax and exemptions can be complex. The rules may vary based on your specific business operations and location. To ensure compliance and maximize your potential savings, it's essential to consult with a qualified tax professional or accountant. They can offer personalized advice tailored to your business needs and help you make informed decisions regarding sales tax and deductions.
Key Takeaways
By being aware of destination-based and origin-based sales tax sourcing and exploring the possibility of obtaining Resale or Exemption Certificates, you can optimize your tax strategy and minimize costs.
Maximize Section 179 Benefits with FlexiSpot Standing Desks:
Investing in FlexiSpot's ergonomic standing desks is a sound business decision and a strategic tax-saving opportunity. To take advantage of these benefits, we encourage you to consult a tax professional and start shopping for standing desks for your small business today. Buy standing desks for your small business from FlexiSpot and experience their positive impact on your employee's health and productivity.
Explore our diverse range of standing desks that qualify for Section 179 deductions, and start making your workplace a healthier and more productive environment.
