Tesla Referral Program

[Mokuzai]

Does anybody have their referral powerwalls on their Tesla account? We have two referral powerwalls and two purchased (though not inspected or fully provisioned yet) and none of them show up on my Tesla account.

They show up in the app just fine, just not on the list of owned items in the account.

 

[MorrisonHiker]

Does anybody have their referral powerwalls on their Tesla account? We have two referral powerwalls and two purchased (though not inspected or fully provisioned yet) and none of them show up on my Tesla account.

They show up in the app just fine, just not on the list of owned items in the account.

No. We just have solar and cars shown.

 

[FlatSix911]

This is not encouraging news... Tesla adds Model Y to referral program, surprising move indicating weak demand - Electrek

Tesla added new Model Y orders to its referral program — a surprising move so early in deliveries — and it could be indicating weak demand. Early on, Tesla put in place a referral program that rewarded existing owners for referring new buyers. Last year, Tesla ended its original referral program, citing concerns with the cost after having to give away over 80 new Roadsters.

A few months later, the automaker decided to relaunch the program with a completely different structure based on giving free Supercharging miles and chances to win a Model Y and a new Roadster. Tesla started giving 1,000 miles of free Supercharging to both the owner giving the referral and the new buyer receiving the referral. Only new Model S, Model X, and Model 3 vehicles were eligible for the referral program, but now the automaker has added new Model Y orders

 

[wdolson]

Tesla included the Model 3 in the incentive program fairly early.

 

[MorrisonHiker]

Looks like they fixed the missing referrals from 2019-2020.

 

[Daniellane]

Looks like they fixed the missing referrals from 2019-2020.

Yep mine is all fixed as well. Both in the App loot box and on my account page on the web

 

[Fiver]

Just to once again confirm the 1099 situation. After talking to my folks who I gifted the Powerwall to, they did in fact get a sheet explaining they would be liable for taxes on the product.

"TAXATION OF POWERWALL AWARD AND W-9 REQUIREMENT. As a reward for your referrals of Tesla products, Tesla will provide you with a Powerwall (value $6,700 USD) and a Backup Gateway (value $1,100 USD) at no charge, along with an installation credit of up to $1,000 USD. This award will be taxable income for many of our customers, including customers who are citizens and/or residents of the United States. The award may be taxable income for state income tax purposes, as well. Tesla is required to report such income to you and to the Internal Revenue Service (IRS) on a Form 1099-MISC. Thus, you will need to provide Tesla with your U.S. taxpayer identification number on a Form W-9. By entering into this agreement, you agree to provide Tesla with a form W-9."​

 

[Daniellane]

Just to once again confirm the 1099 situation. After talking to my folks who I gifted the Powerwall to, they did in fact get a sheet explaining they would be liable for taxes on the product.

"TAXATION OF POWERWALL AWARD AND W-9 REQUIREMENT. As a reward for your referrals of Tesla products, Tesla will provide you with a Powerwall (value $6,700 USD) and a Backup Gateway (value $1,100 USD) at no charge, along with an installation credit of up to $1,000 USD. This award will be taxable income for many of our customers, including customers who are citizens and/or residents of the United States. The award may be taxable income for state income tax purposes, as well. Tesla is required to report such income to you and to the Internal Revenue Service (IRS) on a Form 1099-MISC. Thus, you will need to provide Tesla with your U.S. taxpayer identification number on a Form W-9. By entering into this agreement, you agree to provide Tesla with a form W-9."​

I repeatedly asked Tesla for this type of information, specifically the amount. Never got anything. Now I’m wondering if a 1099-MISC was reported by Tesla for my installation. In such a case for the Taxpayer get a copy of the 1099-MISC as well?

 

[HankLloydRight]

I repeatedly asked Tesla for this type of information, specifically the amount. Never got anything. Now I’m wondering if a 1099-MISC was reported by Tesla for my installation. In such a case for the Taxpayer get a copy of the 1099-MISC as well?

Yes, by law they have to send you (and the IRS) the 1099-MISC by January 31st for the previous tax year.

But I still get 1099s from other investments or companies well after the deadline.

 

[Daniellane]

Yes, by law they have to send you (and the IRS) the 1099-MISC by January 31st for the previous tax year.

But I still get 1099s from other investments or companies well after the deadline.

Thank you,
So the same as a other 1099s... 1099 – INT, 1099 – DIV...

 

[gmtom1]

However, they are still required to issue a 1099. There were installations in 2019 and 2018 that never received 1099s, and there are substantial penalties for the issuer (Tesla in this case) in the event of noncompliance. Eventually they are going to have to get compliant, especially once the Roadsters start getting delivered. It's going to be pretty hard for Tesla to argue their way out of Intentional Disregard when they are telling customers and collecting W-9s for the Powerwall prize (they did for mine), then not following up with actually issuing the 1099.

If you didn't get a 1099, that's no excuse for not reporting the value on your tax return, but I think you have a pretty reasonable argument to get the penalties and interest waived by the IRS.

Increase in Information Return Penalties | Internal Revenue Service

 

[Daniellane]

I’m wondering if they are only issuing 1099s for installations that are purely referral Powerwalls only and not part of a solar system purchase.
It would have been easy to report it, had Tesla provided the exact value of the reward. Not knowing the value is a pretty good excuse for not reporting it.
(Apparently $8,800) according to info in post #8599
Powerwall (value $6,700 USD) and a Backup Gateway (value $1,100 USD) at no charge, along with an installation credit of up to $1,000 USD.

 

[gmtom1]

Sorry, but the IRS is going to disagree with you. The fact is that you are required to report the fair market value of all prize winnings to the IRS. It's on you to make a good faith estimate of the fair market value if one is not provided. Tesla also shows the value of your prize as a credit against your contract price due when you claim your referral prize together as part of a larger system. (It's on my contract).

Since this is a retail product that is sold in "stores", the current retail market price (as noted above) is what the IRS is going to look at if they audit you, and no, the IRS is not going to buy an argument that there's zero value in the red powerwall vs. the retail white one that gets sold for $8800.

Just report it on your taxes in the year that the system installation is completed and be safe. There's a chance that the IRS is not going to pursue everyone that got powerwalls, especially if they levy and collect a hefty fine from Tesla for noncompliance, but it's on you if you want to take that risk. Even if the 3 year statute of limitations passes before the IRS catches up, they could still argue fraud (for which there's no statute) or if the value of the prize causes a > 25% error in your tax due (possible if you have little taxable income, i.e. nontaxable retirement income).

Also, don't forget that many states follow the federal income rules, so your state will also come after you as well (assuming you are resident in an individual income tax state).

 

[Daniellane]

Sorry, but the IRS is going to disagree with you. The fact is that you are required to report the fair market value of all prize winnings to the IRS. It's on you to make a good faith estimate of the fair market value if one is not provided. Tesla also shows the value of your prize as a credit against your contract price due when you claim your referral prize together as part of a larger system. (It's on my contract).

Since this is a retail product that is sold in "stores", the current retail market price (as noted above) is what the IRS is going to look at if they audit you, and no, the IRS is not going to buy an argument that there's zero value in the red powerwall vs. the retail white one that gets sold for $8800.

Just report it on your taxes in the year that the system installation is completed and be safe. There's a chance that the IRS is not going to pursue everyone that got powerwalls, especially if they levy and collect a hefty fine from Tesla for noncompliance, but it's on you if you want to take that risk. Even if the 3 year statute of limitations passes before the IRS catches up, they could still argue fraud (for which there's no statute) or if the value of the prize causes a > 25% error in your tax due (possible if you have little taxable income, i.e. nontaxable retirement income).

Also, don't forget that many states follow the federal income rules, so your state will also come after you as well (assuming you are resident in an individual income tax state).

I live in a no-income tax state. (WA) Not trying to avoid paying the tax. Just needed the correct amount. My invoices don’t show any $ amounts for the powerwall other than the additional $2,000 installation cost Which I paid. My 2019 taxes haven’t been filed yet. Actually provided all the installation invoices to my accountant several weeks ago. I will be discussing the 1099 issue with him now that I have some numbers.
I was Just trying to ascertain that the $8800 (less than I expected) is an accurate number to use in absence of any paperwork.

 

[anon125110]

If anyone needs a referral feel free to use mine, I could really use the extra miles in these unprecedented times, I am sure you could too - Earn Free Supercharging Miles or a $250 Cash Award

 

[Gwgan]

RichRebuilds gets removed from the Referral Program

The people want to know why
Say

 

[FlatSix911]

RichRebuilds gets removed from the Referral Program

The people want to know why
Say

Say it ain't so.. Rich is a valuable resource that Tesla should embrace.

 

[Chopr147]

Rich Rebuilds.............rebuilds Tesla's so Tesla isn't cool with that. Tesla would rather we throw the car away like a broken dishwasher. I fear getting into an accident because I just know I will be fighting for parts to repair it. All while waiting months. They have gotten a little better from what I hear but not much. If they cut him off because of his channel, that is very petty

 

[drklain]

To be fair, Tesla has had issues with people using Youtube channels to publicize their referral codes and collecting hundreds of referrals. There have been multiple times when they have discussed this and Elon has even said the intent was for the referral code to be something you could give a friend or someone you spoke to about Tesla as a "good deal". The Youtube referrals were never like that. Yes they publicized Tesla, but you had a few youtubers getting ludicrous amounts of referral prizes.

Personally, I'd like to see the referral program limited in some way to prevent that (say no more than 10 referrals per year or something). It allows Tesla to limit the pain/cost of referral prizes and yet still allows that Tesla owner who advocates to a friend/colleague to buy a Tesla to get a little something for it (which was always the point of the program).

Rich is a good guy and I support his efforts, but he has also gotten a LOT out of Tesla in the relationship as well. He's not a victim being trod on for having a youtube channel.

 

[Yinn]

Rich Rebuilds.............rebuilds Tesla's so Tesla isn't cool with that. Tesla would rather we throw the car away like a broken dishwasher. I fear getting into an accident because I just know I will be fighting for parts to repair it. All while waiting months. They have gotten a little better from what I hear but not much. If they cut him off because of his channel, that is very petty

Nothing to fear. Several of my cars have been in accidents; it's only an average of 7 months to be repaired. Sure, your rental coverage will only go about 30 days. But if you plan it appropriately, you can pick up an inventory model once that expires. Then sell your existing one once it's out of the shop.