Section 179 Tax Savings - Audi Louisville

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 December 31, 2021. 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 Q7

Audi Q71
100% Depreciation
$80,840

VS

Luxury Car2
27% Depreciation
Should be $21,800 BUT

1st Year depreciation is capped at a maximum of $18,200

In this example, your business could deduct 100% of the Q7 cost (an $80,840 Tax Deduction for your business), but your business can't even deduct the normal 27% 1st-year deduction of the luxury sedan. This is due to the fact that that amount is CAPPED at $18,100. This means that instead of $21,800 as a 1st-year depreciation deduction, you can only claim a maximum of $18,200.

Your business receives an additional $62,000 in depreciation expense for 2021 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 December 31, 2021.

1. Audi Q7 shown fully depreciated in Year One.

2. Luxury car depreciation can continue year two at $16,400, year three at $9,800, and subsequent years at $5,860 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 December 31, 2021.