Pentium2004
Former Vendor
Looking at the completed listings for these on Ebay and you are correct! Delivered to East Valley $3,000. Thank you for the input Pentium2004.
I wonder if people who are selling these for $2500 and taking into account the taxes that need to pay on the award. State and federal taxes are owed on the full award full value ($6000), which for some people can be $2500.
It seems like the majority on eBay of completed listings that are under $3000 have a couple hundred in shipping, with the cheapest going for $2925, so it looks like the price is holding around $3000 for these. I guess it was bound to happen with more people receiving them from last year's longer referral award period. Mine are ready for pickup, but it's hard to decide if it's worth selling them for $3k or just keeping them.
@MIT_S60 This is a volumetric space issue for me, I have eight wheels and am going to reduce to four. I think you are correct, $3k seems to be the fair market value for these.
They legal have to send a 1099-MISC for prizes totaling over $600 in a single year.
Pentium2004
Former Vendor
That's the first that I've hear of this. If it's true a lot of people are going to be screwed. I think it would be pretty hard to require that when there isn't an option to take cash instead of the prize. They would have to list somewhere what the retail value is on the wheels. I've won items well over $1,000 from other companies and haven't ever received any tax information.
sakimano
Active Member
Is $6000 what the seller is held to, tax wise, if FMV turns out to actually be $2500?
i.e. do you get a tax bill for $6000 which you can then offset with a loss of $3500 when you sell for $2500...thus you're really only on the hook for the tax on $2500, which was your true benefit?
I know that Bjorn Nyland has a problem with this (nice problem) in that he has won 3 different teslas on referral programs, and Norway taxes them as income in your hands in effect.
his Model X he owed a significant tax bill, and will in fact need to sell his P90DL Model S that he won which he hasn't even taken delivery of as of yet. He asked Tesla to defer delivery on the Model S prize so that he wouldn't have both the Model X and Model S in the same tax year. Interestingly I wonder if it will now be a P100DL since Tesla doesn't make the P90D anymore.
So when his Model S comes, he needs to immediately sell it, and then turnover most of the value received to the government as tax on both cars' value. Assume siimilar price for both cars and 40% tax at that level, he'd owe 80% of the value of the Model S away, which here in north america would be $120,000-130,000
He has recently won a roadster 2020 so he'll have this same 'problem' again. I would love to have this problem, just to be clear.
MorrisonHiker
S 100D 2021.4.12
You can claim the actual value. Years ago, I won a TV that they claimed was worth over $2000. By the time I actually received the TV, they were selling it for around $1300 so I claimed the actual sales price when I filed my taxes.
Inflated Prize Value? How to Dispute an ARV on Your Taxes
I think the problem is proving FMV. Ebay prices are not proof of FMV, I believe it has to be retail price. I don't think Tesla sells the Arachnid anymore, so it might be hard to prove a different FMV than what they put on the 1099Misc.
For Powerwalls, FMV determination should be easier since they still sell them. Technically the Red Signature edition might have a different value that the normal white, but I doubt it would be considered less by the IRS.
SERIOUSLY people let someone post what they want ....at what price they want... GEEZ.. it's their sale. Everyday people hijack people's threads. Make an offer if you want. If not let them ask what they want. If someone pays that's their choice!!!
sakimano
Active Member
The hijacker was trying to help the op from having a tax problem. Righteous thread jack I think
It looks like they give them out for the Powerwall, but not for the other rewards.
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