For tax purposes, office furniture is classified as 7-year property under MACRS (Modified Accelerated Cost Recovery System). That means you depreciate the cost over 7 years using a declining balance method. However, Section 179 allows you to deduct the full purchase price in the year of acquisition (up to the annual limit), which most companies prefer for cash flow reasons. Consult your accountant for which method suits your situation.

Market value depreciation follows a very different curve than tax depreciation. A Steelcase Leap chair purchased for $1,100 might have a tax book value of $0 after 7 years — but a market value of $300-450 because the secondary market for premium seating is strong. Conversely, a budget task chair purchased for $350 might have a market value of $25-50 after the same period because there's little demand for used budget furniture.

The categories with the best value retention are premium task seating (Steelcase, Herman Miller, Humanscale), height-adjustable desks from major brands, and high-quality lounge furniture. The categories with the worst retention are panel systems/cubicles (configuration-specific, hard to resell), budget-tier anything, and laminate casegoods that show wear.

Using Depreciation Data for Planning

Understanding depreciation curves helps with two decisions: when to replace (the optimal point where maintenance costs exceed the value of the asset) and when to liquidate (selling while there's still meaningful market value). For premium seating, the sweet spot for liquidation is typically 5-8 years — old enough that you're ready for new product, young enough that the chairs still command meaningful resale prices.