2019 M3P Buy Opportunity

[JimboSl1ce]

Hey everyone,

New here and prospective owner of a 2019 Model 3 Performance. I found one with under 10k miles in blue and it's under $43k. Clean carfax, no issues with title, nothing. Clean as can be. Dealer wants to give me max trade value for my car which is also awesome. Seems like a fantastic deal and I'm likely going to proceed and buy it. What are some things I should look out for on a used tesla and what features or add ons like FSD should I look for to make it that much sweeter of a deal?

 

[M3_Performante]

Hey everyone,

New here and prospective owner of a 2019 Model 3 Performance. I found one with under 10k miles in blue and it's under $43k. Clean carfax, no issues with title, nothing. Clean as can be. Dealer wants to give me max trade value for my car which is also awesome. Seems like a fantastic deal and I'm likely going to proceed and buy it. What are some things I should look out for on a used tesla and what features or add ons like FSD should I look for to make it that much sweeter of a deal?

I recently picked up a 2020 M3P with 25k miles with Enhanced Autopilot from Tesla used inventory for $40,100 which also comes with a full year extended warranty on top of the remaining factory warranty.

Although prices have crept up in the last few weeks from when I scored mine, I would highly recommend going through Tesla on buying a used one....you basically get a CPO from Tesla, most often times with upgraded software, FSD,EAP,etc for pennies on the dollar and that extended warranty for piece of mind ....I had an excellent experience with my used purchase through Tesla and friggin love this car!!!

 

[M3_Performante]

No, I have it correct. The amount you owe at the end of the year/April does not matter. It matters what you liability was over the full year. The vast majority of people who pay taxes have amounts deducted from their pay during the year. This amount can be refunded at the end of the year with the $7,500 credit. Since I don't offer to give the IRS a free loan during the year, I'll pay as little as I can from my paychecks and often cut the IRS a check at the end of the year. What I pay in April has no impact. What I pay over the year does. If you only pay $3K of taxes, you can only get $3K back like I said. However, if you pay $15K in paycheck deductions and would get $3K back before the credit, you will. get $10,500 back instead.

this is a NON refundable tax credit

I'm no tax expert, but from what I've been told by many others and even Tesla sales reps is that it does not work like that...It is very confusing, but unfortunately it's not how it works....like I said, the best way to take advantage of the tax credit is to adjust your withholdings and hope to owe at least $7500 in April

I wishit was, but it isn't

here is a very boring CPA explaining what a non refundable tax credit is and how it works....

 

[Clover]

Dude, non-refundable means you can't get back more than you pay, which I have clearly said both times. What you and many others seem to miss is your final payment at the end of the year does not matter. It is your total liability from the full year that matters. If you already paid $15K during the year and were going to get back $3K when you filed your taxes without the federal credit. You would instead get back $10,500. Since your total tax liability for the year is 12K (15-3), you can get the full amount back. You do not need to adjust your withholdings to over $7,500 at the end of the year. They care about the full years amounts, not your final check.

 

[XCare EV]

I recently picked up a 2020 M3P with 25k miles with Enhanced Autopilot from Tesla used inventory for $40,100 which also comes with a full year extended warranty on top of the remaining factory warranty.

Although prices have crept up in the last few weeks from when I scored mine, I would highly recommend going through Tesla on buying a used one....you basically get a CPO from Tesla, most often times with upgraded software, FSD,EAP,etc for pennies on the dollar and that extended warranty for piece of mind ....I had an excellent experience with my used purchase through Tesla and friggin love this car!!!
View attachment 914758

Beautiful car! When the CPO warranty is near the end, reach out to XCare and we'll help! Brent @ XCare EV Performance

 

[ZuleMYP]

Dude, non-refundable means you can't get back more than you pay, which I have clearly said both times. What you and many others seem to miss is your final payment at the end of the year does not matter. It is your total liability from the full year that matters. If you already paid $15K during the year and were going to get back $3K when you filed your taxes without the federal credit. You would instead get back $10,500. Since your total tax liability for the year is 12K (15-3), you can get the full amount back. You do not need to adjust your withholdings to over $7,500 at the end of the year. They care about the full years amounts, not your final check.

Yep; This. What matters is you owed at least the $7500 in taxes. Now if you have enough credits (like solar) to reduce your liability under $7500 you'll loose out on that portion. But as long as you "paid" $7500 or more you're eligible to get the full amount of the EV credit. Thus a non-refundable credit. It's not confusing, just too many people continuing to spread bad information.

 

[Apprunner]

Yep; This. What matters is you owed at least the $7500 in taxes. Now if you have enough credits (like solar) to reduce your liability under $7500 you'll loose out on that portion. But as long as you "paid" $7500 or more you're eligible to get the full amount of the EV credit. Thus a non-refundable credit. It's not confusing, just too many people continuing to spread bad information.

Yeah...already spoke to my tax guy about this and this is right. Also, $43k for that M3P is high and FSD just isn't worth it. I get that thing around $38k to consider it even if its clean or just get a new one. Used EVs can be sketchy...did he charge to 100% everyday...did they Supercharge often...etc etc..

 

[Ital]

Yep; This. What matters is you owed at least the $7500 in taxes. Now if you have enough credits (like solar) to reduce your liability under $7500 you'll loose out on that portion. But as long as you "paid" $7500 or more you're eligible to get the full amount of the EV credit. Thus a non-refundable credit. It's not confusing, just too many people continuing to spread bad information.

ugh... i hope that is not true... I am getting solar this year and from what I read the ev credit gets applied first and then the solar... so yes you can still get the ev tax credit together with solar.

Solar, EV, and EV Charger Tax Credits

Hello, We decided to installed solar this year, which then enabled us to buy an EV, which then needed an EV charger installed. All of these things have tax credits associated with them, but I'm trying to figure out how to get some of it carried over in turbotax instead of losing it. From...

ttlc.intuit.com

 

[mgs333]

Clover and ZuleMYP are correct, I'd hate to see misinformation, no matter how well intentioned, start to spread.

 

[Ital]

Clover and ZuleMYP are correct, I'd hate to see misinformation, no matter how well intentioned, start to spread.

correct about what? If you pay 15k in federal taxes and your solar rebate is 15k, you won't get anything on the ev?
I do not think that is correct.
All I've been reading says you can collect ev first and then solar, so the solar will roll over to the next year.

 

[ZuleMYP]

correct about what? If you pay 15k in federal taxes and your solar rebate is 15k, you won't get anything on the ev?
I do not think that is correct.
All I've been reading says you can collect ev first and then solar, so the solar will roll over to the next year.

As far as I have read I believe solar credit is applied first. But I have no first hand knowledge of this, just heresay. Trying to look for a better answer on this, but a tax professional would be best to ask. My example might have been incorrect.

 

[Gauss Guzzler]

Correct, the "CPA" in @M3_Performante's video is not familiar with common tax rules. A nonrefundable credit just means that you can't get back more than the total cumulative tax that you have paid throughout the entire year. It has nothing to do with your withholdings or end of year payment/refund.

And yes, it's certainly possible to be in a situation where your income is low enough to be under the 150K/300K limit, high enough that you can afford a Tesla, but yet your tax liability is well below $7500. In that case you can play tricks like Roth IRA conversions to increase this year's tax liability enough to pass the threshold.

 

[kpinthebay]

Correct, the "CPA" in @M3_Performante's video is not familiar with common tax rules. A nonrefundable credit just means that you can't get back more than the total cumulative tax that you have paid throughout the entire year. It has nothing to do with your withholdings or end of year payment/refund.

And yes, it's certainly possible to be in a situation where your income is low enough to be under the 150K/300K limit, high enough that you can afford a Tesla, but yet your tax liability is well below $7500. In that case you can play tricks like Roth IRA conversions to increase this year's tax liability enough to pass the threshold.

A little clarification on this... "total cumulative tax that you have paid throughout the year" equals your tax withheld in your paycheck, which really has nothing to do with your total tax liability.

Here's an example:


TAXABLE INCOME = $100,000

TAX LIABILITY (HYPOTHETICAL 15%) = $15,000 <<< TAX CREDIT BASED ON THIS

TOTAL WITHHELD FROM PAYCHECKS = $20,000

END OF YEAR REFUND = $5,000 + $7,500 EV


----OR----

TAXABLE INCOME = $100,000

TAX LIABILITY (HYPOTHETICAL 5%) = $5,000 <<< TAX CREDIT BASED ON THIS

TOTAL WITHHELD FROM PAYCHECKS = $20,000

END OF YEAR REFUND = $15,000 + $5,000 EV limited to total liability


----OR----

TAXABLE INCOME = $100,000

TAX LIABILITY (HYPOTHETICAL 2.5%) = $2,500 <<< TAX CREDIT BASED ON THIS

TOTAL WITHHELD FROM PAYCHECKS = $0

END OF YEAR REFUND = owe $2,500 + $2,500 EV credit limited to total liability = $0 net refund

 

[Gauss Guzzler]

Correct, by "total cumulative" I meant the cumulative total, not just the first portion of the tax year where you pay withholdings and prepayments, but the second portion too, where you file and finalize.