Tax Advantages
Since the Audi Q7 has a Gross Vehicle Weight Rating (GVWR) that exceeds 6,000 pounds, these vehicles can be fully depreciated during the first year of ownership when used exclusively for business purposes**. Choosing a Q7 can deliver sizable tax savings when compared to a similarly priced luxury vehicle.Tax Depreciation Comparison
Listed below is a helpful comparison that highlights the potential tax advantage for business owners that purchase a new Audi Q7 before January 1, 2023✝. Please consult your tax professional in order to determine how this information is applicable to your specific business situation.$80,840 Audi Q7 vs $80,840 Luxury Car
Total allowable depreciation for 1st year of ownership*
Audi Q71 | VS | Luxury Car2 |
1st Year depreciation is capped at a maximum of $19,200 |
In this example, your business could deduct 100% of the Q7 cost (an $80,840 Tax Deduction for your business) because it's Gross Vehicle Weight Rating (GVWR) exceeds 6,000 pounds , but if you purchased a comparably priced luxury sedan, your business couldn't even deduct the normal 27% 1st-year deduction, due to the fact that the 1st Year Deduction amount is CAPPED at $19,100. This means that instead of $21,800 as a 1st-year depreciation deduction, you can only claim a maximum of $19,200.
Your business receives an additional $61,000 in depreciation expense for 2022 by deciding to purchase a Q7.
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, which allows for additional 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, 2023.
1. Audi Q7 shown fully depreciated in Year One.
2. Luxury car depreciation can continue year two at $18,000, year three at $10,800, and subsequent years at $6,460 until the vehicle is fully depreciated or sold.
** 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.
† Comparisons based on Section 179 and 168(k) of the Internal Revenue Code, which allows for additional 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, 2023.