Billionaire saves $13 million in taxes through Ferrari purchase
87-year-old philanthropist benefits from tax write-offs after buying $40 million Ferrari.
1Record-breaking Ferrari sale
Billionaire Herbert A. Wertheim, 87, purchased Ferrari's first electric model, the Luce, for $40 million at a Sotheby's auction. This price was 36 times higher than the car's estimated $1.1 million value. The sale was part of a charity event supporting the Ferrari Foundation's education initiatives. The pre-production chassis made this particular vehicle significantly more valuable than its $640,000 retail price.
2Philanthropy meets tax benefits
In the U.S., large charitable donations can lead to significant tax write-offs under the country's tax system. Wertheim's purchase aligns with a longstanding American tradition of incentivizing wealthy philanthropists. YouTuber Peter Greaves calculated that Wertheim could recoup millions through this purchase. According to 2026 IRS rules, the car's estimated value will be deducted from the $40 million sale price.
3Complex tax calculations
After deducting 0.5% of Wertheim's estimated $200 million adjusted gross income ($1 million), the remaining $37.9 million becomes the basis for tax benefits. The One Big Beautiful Bill Act reduced itemized deduction savings from 37% to 35%. Based on these calculations, Wertheim could receive approximately $13 million in tax refunds from this purchase.
4The billionaire philanthropist's history
With an estimated net worth of $4.8 billion, Wertheim has participated in luxury car auctions before, including purchasing a Ferrari Daytona SP3 for $26 million. He has donated over $200 million to various causes, including $50 million to UC Berkeley Optometry and $100 million to Baptist Health Foundation. In February, he paid $2 million at a Mar-a-Lago charity event for a private meeting with Donald Trump.
5Ferrari's electric venture
Ferrari's first electric model, the Luce, faced controversy upon release. Former Ferrari president Luca di Montezemolo and other analysts criticized its design as uncharacteristic of Ferrari. While other luxury automakers scaled back EV plans due to low demand, Ferrari exceeded its short-term sales target of 500 units, proving skeptics wrong.
6U.S. charitable tax deductions
Tax deductions for charitable donations in the U.S. date back to the 1917 War Revenue Act, designed to maintain private philanthropy during WWI. The Trump administration's One Big Beautiful Bill Act reduced this benefit from 37% to 35% and established that only donations exceeding 0.5% of adjusted gross income could be deducted.
7The future of philanthropy
According to Indiana University's Lilly Family School of Philanthropy, the new 35% limit could reduce donations by $4.1-$6.1 billion. Experts warn that reduced giving by major donors would place greater burden on middle-class contributors, which may be unsustainable as financial pressures on less-wealthy households increase. Urban-Brookings Tax Policy Center's Elena Patel notes that while small donations matter, they don't constitute the majority of charitable giving.
8Policy implications
Wertheim's case highlights how U.S. tax policies benefit wealthy philanthropists. Lower tax incentives may fundamentally change philanthropy's future, with middle-class donors unlikely to fill the gap. Meanwhile, Ferrari's electric vehicle success suggests stronger-than-expected demand in the luxury EV market, challenging industry assumptions about consumer preferences.
Original article: Fortune — Milyarder Ferrari alımıyla 13 milyon dolar vergi avantajı sağladı