@yashK wrote:
Got it. In any of the case, i do not have to do anything from my side. If it is taxable, it is already added in my w2. Otherwise it is taxfree.
Lastly, I do not know if my company will ask me to return the furnitures back to them if i leave my current company. If i end up keeping the furnitures, what you explained above is still applicable ?
Because the amount is under $500, the company probably does not have to follow any rules on disposal. If they allow you to keep the furniture, I do not believe it would normally have to be considered taxable income at that time (like a severance "bonus"). However, they do own the items and would be entitled to ask you to return them. It's up to them.
(If you were keeping an expensive listed asset that was not fully depreciated, that might be considered income, at the fair market value at the time of separation. But the dollar amount here is too small for these to be listed assets, in most cases.)
