Tax Advantages
Because Range Rover and Range Rover Sport have gross vehicle weight ratings greater than 6,000 pounds,** they qualify for an accelerated tax depreciation schedule. The vehicles can be depreciated up to 60 percent in the first year, and fully depreciated in 6 years. A significant advantage compared to similarly priced luxury cars.
Tax Depreciation Comparisons
The comparisons below illustrate the tax depreciation advantages for business owners who purchase a new Range Rover or Range Rover Sport before December 31, 2016.† Please consult your tax advisor on how this information can be applied to your individual business situation.
Range Rover Tax Depreciation Comparison
$84,000 Range Rover vs $84,000 Luxury Car
Total allowable depreciation years 1 through 4*
94%
$78,902 FOR RANGE ROVER1
25%
$21,185 FOR LUXURY CAR2
| YEAR | RANGE ROVER | LUXURY CAR |
|---|---|---|
| 1 | $60,400 | $11,160 |
| 2 | $9,440 | $5,100 |
| 3 | $5,664 | $3,050 |
| 4 | $3,398 | $1,875 |
|
Total Depreciation Years 1 through 4 |
$78,902 | $21,185 |
Range Rover Sport Tax Depreciation Comparison
$64,000 RANGE ROVER SPORT VS $64,000 LUXURY CAR
Total allowable depreciation, years 1 through 4*
95%
$60,630 FOR RANGE ROVER SPORT3
33%
$21,185 FOR LUXURY CAR2
| YEAR | RANGE ROVER SPORT | LUXURY CAR |
|---|---|---|
| 1 | $48,400 | $11,160 |
| 2 | $6,240 | $5,100 |
| 3 | $3,744 | $3,050 |
| 4 | $2,246 | $1,875 |
|
Total Depreciation Years 1 through 4 |
$60,630 | $21,185 |
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 50 percent or greater business use and place vehicles in service by December 31, 2016.
- Range Rover depreciation can continue at $3,398 in Year Five, and $1,699 in Year Six, at which point it is fully depreciated.
- Luxury car depreciation can continue at $1,875 per year for each succeeding year until the vehicle is fully depreciated or sold.
- Range Rover Sport depreciation can continue at $2,246 in Year Five, and $1,123 in Year Six, at which point it is fully depreciated.
© 2016 Jaguar Land Rover North America, LLC