$40 million Ferrari, $13 million tax twist: 87-year-old billionaire’s charity buy could cut his US tax bill

American billionaire Herbert A. Wertheim’s $40 million purchase of Ferrari’s first electric vehicle at a charity auction could potentially qualify for a significant tax deduction under US charitable giving rules, Fortune reported.

The 87-year-old optometrist-turned-businessman and philanthropist bought the Ferrari Luce earlier this month at a Sotheby’s public auction. The auction was held to benefit the Ferrari Foundation, which supports education initiatives globally.

The $40 million price paid for the car was more than 36 times its presale estimate of $1.1 million. While the Luce has a retail price of $640,000, the auctioned vehicle carried a higher value because it had a pre-production chassis.


The potential tax benefit stems from the charitable nature of the purchase. Automotive content creator and television presenter Peter Greaves highlighted the possibility in a YouTube video, according to Fortune.

Based on the 2026 US tax rules, Wertheim could potentially deduct the amount paid above the car's estimated fair market value. Fortune reported that if his adjusted gross income were around $200 million, a 0.5% floor would also apply to the deduction.

The calculation would leave around $37.9 million after accounting for the $1.1 million estimated value of the car and the 0.5% adjusted gross income threshold. The US' so-called 2/37ths rule, introduced under the One Big Beautiful Bill Act, would further reduce the amount eligible for the deduction, Fortune reported.

Under the new rules, the benefit for itemised deductions for top earners is capped at 35%, compared with 37% earlier. Based on the calculation cited by Fortune, Wertheim could potentially receive more than $13 million in tax savings.

Wertheim did not immediately respond to Fortune's request for comment and has not publicly commented on whether he intends to claim the tax benefit from the Ferrari purchase.

The billionaire, who has an estimated net worth of $4.8 billion, has previously participated in luxury vehicle charity auctions. He reportedly paid $26 million for a Ferrari Daytona SP3, known as the "599+1". He has donated more than $200 million to various causes, including $50 million to UC Berkeley Optometry and $100 million to Baptist Health Foundation.

In February, Wertheim also paid $2 million at a Mar-a-Lago charity event for a private visit with US President Donald Trump at the White House. He briefly launched a Congressional bid in Florida's 22nd District earlier this year.

US charity tax breaks face changes

The tax deduction for charitable giving in the US dates back to 1917, when Congress introduced it under the War Revenue Act to encourage private philanthropy during World War I.

The rules have evolved over the years, but the One Big Beautiful Bill Act has reduced the tax benefit for top earners from 37% to 35%. The legislation also requires itemised taxpayers to claim deductions only for charitable donations exceeding 0.5% of their adjusted gross income.

The changes could affect charitable giving by wealthy Americans. Fortune cited an estimate from the Indiana University Lilly Family School of Philanthropy that the new 35% limit could reduce donations by between $4.1 billion and $6.1 billion.

The changes come as concerns grow that lower contributions from wealthy donors could place a greater burden on middle-class donors and charities.