In this regard, do we really have the IRS to thank for the proliferation of cube farms as opposed to the traditional thinking: mega-corporation? (PS. I'm a firm believer cube farms kill productivity and stifle creativity...I'm not a cow. However, they're much better than a big table housing 11 shoulder-to-shoulder consultants.)
Office furniture can be depreciated much faster than leasehold improvements, over 7 years. So for $20 of office furniture you can deduct about $3 a year: better than nothing. Even better, office furniture is a real asset, so you can lease it. Now you're not out any cash, just a convenient monthly payment, which is 100% deductible.
This is why companies build cubicle farms instead of walls, even though the dollar cost is comparable.