Porsche Cayenne Section 179 Tax Deduction
Tax Advantages
Since the Porsche Cayenne has a Gross Vehicle Weight Rating (GVWR) which exceeds 6,000 pounds, these models can be fully depreciated during the first year of ownership when used solely for business purposes**. Choosing a Cayenne may deliver significant tax advantages when compared to a similarly priced luxury vehicle.
Tax Depreciation Comparison
Below you will find comparisons that illustrate the tax depreciation advantages for business owners who purchase a new Porsche Cayenne before January 1, 2024†. Please consult your tax professional in order to determine how this information can be applied to your individual business situation.
$80,840 Porsche Cayenne vs $80,840 Luxury Car
Total allowable depreciation for 1st year of ownership*
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Porsche Cayenne1 |
VS |
Luxury Car2 |
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|
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1st Year depreciation is capped at a maximum of $19,200 |
In this situation, your business could deduct 100% of the Cayenne cost (an $80,840 Tax Deduction for Your Business), but your business can’t even deduct the normal 27% 1st year deduction on the luxury sedan because that amount is CAPPED at $19,200. So instead of $21,800 as a 1st-year depreciation deduction, you can only claim a maximum of $19,200.
Your business receives an additional $60,000+ in depreciation expense for 2023 deciding to purchase a Cayenne.
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, 2024.
1Porsche Cayenne shown fully depreciated in Year One.
2Luxury 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, the Porsche Cayenne is classified as a “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, 2024.