Section 179 Tax Savings on Porsche Cayenne in Sewickley, PA

Porsche Tax Savings Cayenne

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 December 31, 2020. 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*

2021 Porsche Cayenne

Porsche Cayenne1
100% Depreciation
$80,840

VS

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

1st Year depreciation is capped at a maximum of $18,100

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 $18,100. So instead of $21,800 as a 1st-year depreciation deduction, you can only claim a maximum of $18,100.

Your business receives an additional $62,000 in depreciation expense for 2020 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 December 31, 2020.

1. Porsche Cayenne shown fully depreciated in Year One.

2. Luxury car depreciation can continue year two at $16,100, year three at $9,700, and subsequent years at $5,760 until the vehicle is fully depreciated or sold.

** With Gross Vehicle Weight Ratings (GVWR) of more than 6,000 pounds, these Porsche 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, 2020.