Chivari Tax Talk 2025
BUY Furniture or Pay Taxes?
Expanding/Upgrading Your Business In 2026?
Planning to expand your business and/or buy new furnishings for your facility? Good news: IRS Section 179 will permit the immediate depreciation and expense of certain business equipment, up to $2.5 million in total. So, if you’ll need tables and chairs for next year -- buy them before December 31 -- and lower your 2025 tax liability!
Do You Have A Strategy FOR Employee Payouts?
If you’re a small business, you should consider paying employee bonuses in December and not in January. For individuals, make sure itemized deductions, such as real estate taxes, are paid in calendar year 2025.
Tax Credits
Some business purchases may qualify for tax credits. Research available tax credits in your jurisdiction related to specific purchases, such as energy-efficient equipment, electric vehicles or research and development activities.
Timing Considerations
Making a purchase before the end of the year allows you to take advantage of available tax benefits sooner rather than later. Consideration of the timing of large purchases can help optimize your tax strategy.
The Section 179 Deduction...
Business Equipment Is Generally Tax-Deductible
Under IRS rules, furniture and equipment used in an active trade or business are considered capital assets. These include:
- Chiavari chairs and banquet chairs
- Folding chairs and stackable seating
- Banquet, cocktail, and training tables
- Portable bars and back-of-house equipment
- Carts, dollies, and storage solutions
- Dance floors and modular event infrastructure
These assets may be expensed immediately or depreciated over time, depending on the method used.
Section 179 Expensing (IRC §179)
Internal Revenue Code §179 allows eligible businesses to expense (deduct) the full purchase price of qualifying equipment in the year it is placed into service—rather than depreciating it over several years.
Key Highlights:
- Applies to tangible personal property
- Includes furniture, fixtures, and equipment
- Equipment must be purchased and placed into service by December 31
- Used and new equipment may qualify
2025 deduction limits are very high (well into the millions), making this practical for most event businesses
📌 Example:
If an event rental company purchases $60,000 in chairs and tables before year-end and qualifies under §179, they may be able to deduct the entire $60,000 against taxable income.
Bonus Depreciation (IRC §168(k))
If Section 179 is not used—or only partially used—Bonus Depreciation under IRC §168(k) may allow businesses to deduct a significant percentage of the equipment cost upfront.
Key Points:
- Applies to new and used equipment
- Automatically applies unless the business opts out
- Allows accelerated depreciation in early years
- Often used in combination with §179
- This can be especially useful for larger purchases or growing inventories.
Regular MACRS Depreciation (IRC §168)
If neither Section 179 nor Bonus Depreciation is fully utilized, equipment can still be depreciated under the Modified Accelerated Cost Recovery System (MACRS).
- Furniture and equipment typically fall into 5- or 7-year property classes
- Provides annual depreciation deductions over the asset’s useful life
- Still reduces taxable income year after year
Cash vs. Financing: Both May Qualify
In many cases:
- Equipment purchased with cash
- Equipment purchased with financing
- Equipment purchased with a deposit and placed into service
...may still qualify for tax benefits—as long as the asset is placed into service before year-end.
This makes year-end purchasing especially powerful for businesses managing cash flow.
Why Event Businesses Benefit Most
For event rental companies and venues, these purchases:
- Directly generate revenue
- Replace worn or outdated inventory
- Increase booking capacity
- Improve presentation and client experience
In other words, these aren’t just deductions—they’re income-producing assets.
⚠️ Important Tax Disclaimer
This information is provided for general educational purposes only and does not constitute tax, legal, or accounting advice.
Tax laws and eligibility vary by business structure, state, and individual circumstances.
Always consult with your CPA or qualified tax advisor to determine how Section 179, bonus depreciation, or other tax provisions apply to your specific situation.
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