A Sloane Automotive Dealership
When you begin for the right luxury SUV to match your business needs, the first hurdle you consider is probably going to be what it will cost you. You need to balance desire with what's affordable for your business and that's where Section 179 comes into play. At Audi Warrington, we recommend learning the benefits of Section 179 and how it can help fit your inventory out in style!
It's a pretty simple set of rules to follow. As long as a vehicle has a Gross Vehicle Weight Rating or GVWR under 6,000 pounds, you can qualify for a deduction that totals up to $25,000 off as long as the purchase is made and placed into service before December 31st. There are other conditions to consider with this rule but this is the most important part for your business. This applies to all SUV and crossover models that meet these conditions.
| 2017 Tax Year | 2018 Tax Year | |
| Section 179 Overall Limit | $500,000.00 | $1,000,000.00 |
| Section 179 Limit for SUVs | $25,000.00 | $25,000.00 |
| Bonus Depreciation | 50% | 100% |
| Additional 28 Of Depreciation (first year depreciation) | $11,160.00 | N/A |
| Qualifying Vehicles | New Vehicles Only | New and Used Vehicles |
| Example Vehicle | Audi Q7 | Audi Q7 |
| Sales Price | $80,000.00 | $80,000.00 |
| Section 179 Depreciation | $25,000.00 | $25,000.00 |
| Bonus Depreciation | 50% of amount remaining - $27,500.00 | 100% of amount remaining - $55,000.00 |
| Additional Depreciation (first year depreciation) | $11,160.00 | N/A |
| Total Depreciation | $63,660.00 | $80,000.00 |
| Total Depreciation (% of purchase price) | 79.58% | 100% |
This is for informational purposes, we are not tax professionals. Please consult a tax expert regarding your personal situation and advice before making any decision.
Most Audi vehicles will not meet the qualifications of this deduction but with the Audi Q7, you'll find a large enough model to check off Section 179's list of requirements. And it needs to be a specific trim configuration to match the needs as not all Audi Q7 trim levels will meet the weight requirement. The Audi Q7 3.0T Premium trim will provide all your business needs and checks in at over 6,000 pounds. If you're looking for a luxury vehicle that can meet the needs of your business and will get you the deduction, the Audi Q7 is what you are looking for!
If you would like to take advantage of the Section 179 Deduction, let us know that your SUV purchase is part of a business transaction and we can help show you how it will benefit you and your business venture. We'll help you work through the specifics and get you a business SUV at a deducted cost!
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Audi Warrington
1607 Easton Road
Warrington, PA 18976
