Section 179 Tax Savings

Tax Advantages

Due to the fact that the Audi Q7 and Audi Q8 each have a Gross Vehicle Weight Rating (GVWR) that exceeds 6,000 pounds, these models can be fully depreciated during the first year of ownership when used exclusively for business purposes**. Compared to a similarly priced luxury vehicle, choosing a Q7 or Q8 can provide significant tax savings.

Tax Depreciation Savings Example

Below, you'll find a useful comparison that illustrates the potential tax savings for business owners that purchase a new Audi Q7 or Q8 before January 1, 2023. Be sure to refer to your tax professional for advice on how to determine if this information is applicable to your specific business situation.


$80,840 Audi Q7 or Q8 vs $80,840 Luxury Car

Total allowable depreciation for 1st year of ownership*

Audi Q7

Audi Q8

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 $19,200

In this scenario, your business could deduct 100% of the Q7 or Q7 cost (an $80,840 tax deduction for your business) since these models have a Gross Vehicle Weight Rating (GVWR) exceeding 6,000 pounds. If you purchased a comparably priced luxury sedan, your business wouldn't even be able to deduct the normal 27% first-year deduction since the first-year deduction amount is CAPPED at $19,200. Instead of $21,800 as a 1st-year depreciation deduction, you can only claim a maximum of $19,200.

The end result? Your business receives an additional $61,000 in depreciation expense for 2022 by deciding to purchase a Q7 or Q8.



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 or Audi Q8 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.