Do you remember the first time you saw a Mercedes-Benz G-Wagon? Maybe it was late, and you were cruising home along a deserted stretch of road when it appeared: a gleaming, squared-off silhouette, like something Tiffany & Co. might dream up if they designed armored vehicles. A rolling jewel box with military roots. It may seem counterintuitive that these status symbols double as a tax strategy. But according to verified Instagrammer Fairies Quadri (@faares.q), for business owners, a Mercedes-Benz G-Wagon is more than just flaunting success; it’s a legitimate financial play. In an Instagram reel that’s been watched more than 1.4 million times, he explains. What Does the Tax Code Have to Do With Rich People Driving G-Wagons? Under the on-screen text that reads, "Why do rich people all drive G-Wagons?" Quadri asks that same question to an imaginary car dealership, "Hey dealership, why do rich people all drive G-Wagons?" Then, he appears on the opposite side of the screen, wearing a very dealershipish gray Polo shirt and answers himself. "Well, it’s not to look rich, I’ll tell you that." Quadri next adopts a skeptical pose, "For a car that costs $100,000? I think you’re pretty rich," he says. Gray shirt Quadri replies, "The real reason is because the IRS has a special tax code called Section 179 which allows people to write off the entire purchase price of the vehicle on their taxes. If it is used for business." OWNERSHIP STORIES Viral stories from across the web Our team of experts tracks what owners are saying about car-shopping, repairs, the daily driving experience and more on social media. But why is there such a focus on the Mercedes-Benz G-Class, colloquially known as the G-Wagon? "Why does everyone specifically buy G-Wagons," he asks his alter ego. “Why not like a BMW?” "Because in order to qualify for the entire tax write-off, the vehicle must weigh over 6,000 pounds, and there’s not a lot of cars that do," answers gray shirt Quadri. Gallery: 40 years of Mercedes-Benz G Class Does Writing Off A G-Wagon Raise Your Likelihood of Getting Audited? However, there might be a drawback to taking a $100,000 (or more) deduction on your taxes. Saji George (@sajispicykithen), a Jacksonville, Florida-based restaurateur, said, 'My CPA [does] not recommend writing off vehicles at all. It signals [to the] IRS to audit. Kind of like having a red car and speeding. She said it's better to take mileage." Another commenter says they regularly write off their vehicle, “"hat’s a Section 179 write-off. Very useful. I’ve used it for years," said Kameahle Christopher (@sexidredz14). However, at least three users mentioned that the good times are ending. Donald Pero (@donaldpero2) offered the most complete explanation: "The full tax write-off of vehicles over 6,000 lbs expired in 2022. This year it is 40%. Next year it falls to 20%. What you are saying was true in 2022, but not anymore." Expired Exemptions? Research shows why there was such a range of opinions. Under the One Big Beautiful Bill Act (OBBBA), the rules changed again. OBBBA "reinstates the 100% bonus depreciation permanently for qualified property acquired and placed in service after January 19, 2025." This reverses previous plans to step it down. Kelly Blue Book explains further, "The basic qualifying criteria are that the vehicle must be used for business within the first year of the purchase and that at least 50% of its operation must be for a business purpose." Of course, before trying this tax gambit, you should talk to your accountant. If you are inclined to write off your vehicle, those that Quadri says make the weight class cut include the Chevrolet Tahoe, GMC Yukon, Ford Expedition, Cadillac Escalade, Jeep Grand Cherokee, Toyota 4Runner, Tesla Model X, Ford F-250, Chevrolet Silverado, and Dodge Ram. Judging by the comments, many people would very much like to write their car off their taxes. "Dang it! Why isn’t the big body Ford Bronco on there," one grumbled. Motor1 reached out to Quadri via email. We’ll update this if he responds. We want your opinion! What would you like to see on Motor1.com? Take our 3 minute survey. - The Motor1.com Team
