Depreciation for WFH Office Furniture - Sole Proprietor

[Michael in ABQ]

I have a small side business selling products online. I'm setting up a home office and looking to buy a nice desk, chair, and a couple of monitors to upgrade from my laptop on the kitchen table.

I'm trying to determine if I have to, or if I should, depreciate these expenses over 7 years under the Modified Accelerated Cost Recovery System (MACRS), or just treat it as a one-time expense this year.

Profit from the business will probably be around $5k this year and the office furniture I'm looking to buy will be in the $1-$1.5k range. I've been deployed to a combat zone so my taxable income will be ridiculously low this year and I will get a huge tax refund either way.

I've got a fairly good handle on my accounting but I'd prefer not to add additional complexity of recognizing depreciation every month for the next 7 years if it's not necessary. Plus, if I sell this business in the future I'm pretty sure the buyer will not want my desk, chair, etc.

[terran]

I think you should be safe to take a section 179 deduction all in one year. See page 15 of https://www.irs.gov/pub/irs-pdf/p946.pdf

[Michael in ABQ]

I think you should be safe to take a section 179 deduction all in one year. See page 15 of https://www.irs.gov/pub/irs-pdf/p946.pdf

That's what I planned. I'm just wondering if there's something I'm missing such as the benefits of taking that expense in the future where my taxable income will be higher. Granted, it's such a small amount that it won't really move the needle much regardless.

[SeattleCPA]

I think you consider using the tangible property regulations rules to simply write off the amounts you spend as expenses.

Easiest accounting, no recapture to deal with later... more info here in the "De minimis safe harbor" paragraphs:

https://evergreensmallbusiness.com/small-businesses-and-the-new-sec-263-repair-regulations/