Porsche Cayenne Section 179 Tax Deduction for 2024
2024 IRS Section 179 for New Porsche Cayenne
You may qualify for significant tax deduction savings with a new Porsche Cayenneat Porsche Norwell.
Shop Cayenne InventoryPorsche Cayenne Questions?
Please Contact Us At 781‑261‑5200.
IRS Section 179 and 168(k) Potential Tax Advantages
Business owners have the opportunity to make their next new Porsche Cayenne purchase even more rewarding as a result of the potential tax savings from Sections 179 and 168(k) of the IRS tax code. Choosing a new Porsche Cayenne over another luxury vehicle can provide significant of advantages not only for you, but for your business as well.
IRS Section 179 for 2024
The Porsche Cayenne falls into the “Heavy” category – which is defined as vehicles with a GVWR (gross vehicle weight rating) over 6,000 pounds, but not more than 14,000 pounds.
For 2024, Section 179 allows for a maximum depreciation of $30,500 for “Heavy” vehicles in the current tax year, provided the vehicle is bought and put into service before January 1, 2025 and also meets certain other conditions.
However, there have been important changes to these tax deductions for the 2024 Tax Year.
It is best to speak with your professional tax advisor for complete details regarding you and your business' qualifications, but the conditions include:
Shop Cayenne Inventory- The vehicle can be either new or used; however, it must be purchased in an “arm’s-length” transaction that has been financed with qualified loans and leases and the title of the vehicle must be in the company’s name and not in the name of the company owner.
- At least 50% of the time, the vehicle should be used for business purposes and if the vehicle is not used completely for business purposes, 100% of the time, then there is a reduction of depreciation limits by the corresponding percentage of personal usage.
- You can claim the Section 179 deduction only in the tax year in which the vehicle has been put into service i.e. when the vehicle is ready and available, although you are not using the vehicle.
- Also, a vehicle that has been used for personal purposes first does not qualify for the Section 179 deduction if its purpose is changed to business use in a later year.
- Note: Individual tax situations may vary. Please consult your tax advisor for complete details on rules applicable to your business.
IRS Section 168(k) “Bonus Depreciation”
Additionally, Section 168(k) permits for additional “Bonus Depreciation” totaling 60% of the purchase price of the vehicle through the end of 2024, which, when added to the $30,500 from Section 179, can provide a dramatic first-year depreciation tax deduction for new Cayenne SUVs purchased in 2024.
But starting in 2025, the allowable bonus depreciation percentage will decrease to 40%, meaning this tax benefit will be less impactful next year.
Shop Cayenne InventoryExample | “Heavy” Section 179 | “Light” Section 179 |
|---|---|---|
| 2024 IRS Section 179 Maximum 1st Year Depreciation | $30,500 | $12,500 |
| Section 168(k) Bonus Depreciation | 60% of Purchase Price | Capped at $8,000 for Luxury Vehicles |
| Qualifying Vehicles | New & Used | New & Used |
Example Vehicle | Porsche Cayenne | Some Other Luxury Sedan |
| Purchase Price | $96,380 | $96,380 |
| First Year Section 179 Maximum Depreciation | $30,500 | $12,400 |
| First Year Section 168(k) Bonus Depreciation | $57,828 | Capped at $8,000 |
| Total 1st Year Depreciation | $88,328 | $20,400 |
Additional 1st Year Depreciation for “Heavy” Section 179 Vehicles | $67,928 | – |
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.
**With Gross Vehicle Weight Ratings (GVWR) of more than 6,000 pounds, the Porsche Cayenne is classified as a “Heavy SUV”. Gross Vehicle Weight Rating (GVWR) is the manufacturer’s rating of the vehicle’s maximum weight when fully loaded with people and cargo.
**REMINDER: If you have any questions, be sure to contact your tax professional for exact recommendations and rules related to Section 179 and vehicle eligibility.**
Luxury car depreciation can continue year two at $19,800, year three at $11,900, and subsequent years at $7,160 until the vehicle is fully depreciated or sold.
*Comparisons based on Section 179 and 168(k) of the Internal Revenue Code, which allows for additional first year depreciation for eligible “Heavy” vehicles and reflects figures for owners who purchase vehicles for 100 percent business use and place vehicles in service by January 1, 2025.
AdChoices