IRS Tax Section 179 Information
With Audi Louisville
Tax Advantages
Under Sections 179 and Section 168(k) of the US Tax Code, purchasing an Audi Q7, an Audi Q8, or an Audi Q8 e-tron can provide significant tax advantages for you and your company when used exclusively for business purposes**. Compared to a similarly priced luxury vehicle, choosing a Q7, Q8, or Q8 e-tron can provide significant tax savings - up to and including the potential to fully-depreciate the entire purchase in the first year of ownership.Tax Depreciation Comparison for the 2024 Tax Year
Listed below is a helpful comparison that highlights the potential tax advantage for business owners that purchase a new Audi Q7 before January 1, 2025*. But the same main points of express depreciation applies to not only the Q7, but the Q8 and Q8 e-tron as well, and at the same rate. Please consult your tax professional in order to determine how this information is applicable to your specific business situation.
In this example, your business could deduct 97.7% of the purchase price of a new Audi Q7 (a $79,004 Tax Deduction for your business) because it's Gross Vehicle Weight Rating (GVWR) exceeds 6,000 pounds, classifying it in the "Heavy" Category of Section 179**. The "Heavy" Section 179 maximum deduction is $30,500 versus just $12,500 for "Light" vehciles. Additionally, "Heavy" vehicles are allowed 60% Bonus Depreciation under Section 168(k), while that Bonus Depreciation is capped at just $8,000 for "Light" vehicles.
This difference in how your next vehicle is classified (as "Heavy" instead of "Light") means your business receives an additional $58,504 in depreciation expense for the tax year 2024 provided your new Audi Q7, Audi Q8, or Audi Q8 e-tron is purchased and placed into service before January 1, 2025*, and is used 100% for business purposes.
Individual tax situations may vary. The information presented was accurate at time of publishing. Federal rules and tax guidelines are subject to change. Consult your tax advisor for complete details on rules applicable to your business.
* Comparisons based on Section 179 and 168(k) of the Internal Revenue Code for the tax year 2024, which allows for an additional 60% of first year depreciation for eligible vehicles and reflects figures for owners who purchase vehicles for 100 percent business use and place vehicles in service by January 1, 2025.
** With Gross Vehicle Weight Ratings (GVWR) of more than 6,000 pounds, these Audi models are classified as "Heavy SUVs." Gross Vehicle Weight Rating (GVWR) is the manufacturer's rating of the vehicle's maximum weight when fully loaded with people and cargo.
Luxury car depreciation can continue in year two at $19,800, year three at $11,900, and subsequent years at $7,160 until the vehicle is fully depreciated or sold.