Buying or selling a Powerwall 2? A warning...

[MelaniainLA]

This is for the people who still think they can, or are trying to, buy or sell a PW2 referral award.

I just got the contract for my PW2 install, and included was this paragraph:

View attachment 301583

So even if you are able to 'transfer' the award to a 'friend' or have Tesla install it at an alternate address, whoever signs the contract must also fill out a W-9 and will be taxed on the award value of $5,500. At this point, I do not know if the installation credit is also taxable, but from what I can tell, it's not, but don't quote me on that. Included in the docu-sign document is a W-9 to fill out before they will start the process rolling.

So as a buyer or seller, someone's going to be paying Uncle Sam.

Thank you SO much for posting this!!! Did they provide any clarity on how you can redeem the credit in lieu of the Powerwall, and how much of a credit you qualify for in the USA, and finally whether the credits are transferable? My father in law got the Powerwall (hasn't been called yet) but wants to get credits (lives in apartment -- no use for it) and wants to transfer credits to us...

 

[HankLloydRight]

Thank you SO much for posting this!!! Did they provide any clarity on how you can redeem the credit in lieu of the Powerwall, and how much of a credit you qualify for in the USA, and finally whether the credits are transferable? My father in law got the Powerwall (hasn't been called yet) but wants to get credits (lives in apartment -- no use for it) and wants to transfer credits to us...

Their policies seem to be in-flux about these issues, so I won't be commenting on them any longer.

Obamacare taxes

What are "Obamacare taxes"?

 

[MelaniainLA]

Their policies seem to be in-flux about these issues, so I won't be commenting on them any longer.

Got it -- guess we'll be patient and wait... thanks for all you have done thus far!

What are "Obamacare taxes"?

Obamacare added additional 0.9% income tax on TOP of existing federal taxes for individuals making >200k or couples making >250k (somehow they only allow the second spouse to make $50k?!). It's disgusting. Like I said, if you live in CA, where you can no longer deduct state/local taxes from federal returns, and are self employed, effective tax rate is over 60%, and if you count 10% sales tax in places like Los Angeles, it's more like 70% assuming you spend what you earn.

 

[HankLloydRight]

Time to move.

 

[K-MTG]

Powerwalls are taxable, which is why we took the credit of $5500 on 2 of the 4 we have coming and turned around and bought 2. I get the tax and utility incentives on those two and only need to pay tax on 2. Also, got confirmation that the credit CANNOT be used towards the Model 3, which made our choice on a vehicle easier.

I was told the $5500 credit is not taxable when applied to a vehicle. They just show a "adjustment"

That's interesting...would you be able to ask if it can be used for EAP on the Model 3? I already have my 3 but would love to get EAP.

If you're in a high tax state like CA, and in an upper income bracket, our combined federal + state + Medicare + Social Security + Obamacare taxes can approach 60% -- so in reality you're getting 40% off the Powerwall. Moreover, if you sell it and the buyer has to pay those taxes, the buyer is no longer getting a good deal! OOPS!

That's me basically...40% off doesn't seem to be a great deal anymore. Do we still qualify for any rebate for installing the powerwall?
If I were to put the powerwall under one of my grandparents name who live at my place currently (and have little income). What kind of taxes would they pay? They only paid $300 in taxes last year...

It's whatever your federal and state effective income tax rate (bracket) is (will be). It's different for everyone.

This is 1099-Misc income. Hopefully Tesla will be smart about it and put it in Box 3 (Other income) and not Box 7 (non-employee compensation) since Box 7 would trigger paying the 15.3% self-employment (social security) tax on top of the regular income tax.

I'm not a tax person and this is not tax advice, but if if you have to fill out a Schedule C to report the 1099-misc income, I don't know what you would be able to deduct, since it's not a business you're running for a profit. It's just award income. I suppose if you had some sort of expenses generating those referrals, you might be able to deduct them, but I can't image what expense anyone would have unless they were running Google Adwords or other advertising campaigns. But they would have to be real documented business expenses relating to the referral program, not just fabricated ones.

The expense of my Tesla payments...showing off the car to get referrals

 

[KyleDay]

Tax technically speaking, the installation credit would also be taxable, in addition to the value of the powerwall, when installed.

 

[HankLloydRight]

That's interesting...would you be able to ask if it can be used for EAP on the Model 3? I already have my 3 but would love to get EAP.

I really can't comment.

Do we still qualify for any rebate for installing the powerwall?

I think if you install it with solar you might, but standalone, I don't think so. Other people know more than me can chime in on this.

If I were to put the powerwall under one of my grandparents name who live at my place currently (and have little income). What kind of taxes would they pay? They only paid $300 in taxes last year...

You'd have to figure it out yourself. But the award is in your name, so I'm pretty sure that's who Tesla is going to write the contract for. You can try putting their info into the W-9, but not sure if that would fly.

he expense of my Tesla payments...showing off the car to get referrals

If you can convince the IRS that's a valid expense, go for it.

 

[Kbra]

This is for the people who still think they can, or are trying to, buy or sell a PW2 referral award.

I just got the contract for my PW2 install, and included was this paragraph:

View attachment 301583

So even if you are able to 'transfer' the award to a 'friend' or have Tesla install it at an alternate address, whoever signs the contract must also fill out a W-9 and will be taxed on the award value of $5,500. At this point, I do not know if the installation credit is also taxable, but from what I can tell, it's not, but don't quote me on that. Included in the docu-sign document is a W-9 to fill out before they will start the process rolling.

So as a buyer or seller, someone's going to be paying Uncle Sam.

So are you saying you are actually making progress on having a Referral Powerwall installed? I was just informed that my mid Summer estimate has been pused out 8-10 months due to "long inventory delay."

When did you submit your survey vs design from engineering?

Timeline:
March 27 - Received Survey Invite to take photos of the area.
March 29 - Completed Survey with information for design.
Told 2-3 weeks from submittal for engineering design
Engineering exteneded to ETA of Mid June
Install originally estimated at mid summer.
Latest update is add 8-10 months to that...

 

[HankLloydRight]

So are you saying you are actually making progress on having a Referral Powerwall installed? I was just informed that my mid Summer estimate has been pused out 8-10 months due to "long inventory delay."

I'm not as Type-A as the rest of you, so I don't keep track of dates like that. I guess I could go search out the emails I sent, but that's too much trouble. I got the engineering design today, but had some questions before I sign the contract and utility interconnect. They haven't given me an install timeline yet.

 

[ckwong]

I think if you install it with solar you might, but standalone, I don't think so. Other people know more than me can chime in on this.

You are correct! When I was shopping for solar panels a few months back Tesla Solar rep told me if I were to get the PW with the panels I can get 30% federal rebate on the total cost of the system but if I were to add a PW on a later date then it doesn't qualify for the 30% rebate. I would also get priority for the PW install if I were to get it as a whole package deal. I really wanted to go with Tesla Solar but their prices are just higher then a local company.

 

[Kbra]

I'm not as Type-A as the rest of you, so I don't keep track of dates like that. I guess I could go search out the emails I sent, but that's too much trouble. I got the engineering design today, but had some questions before I sign the contract and utility interconnect. They haven't given me an install timeline yet.

The only approximate date im asking is when did you submit the survey results. I found it in 5 seconds of gmail search.

 

[HankLloydRight]

Like everyone uses Gmail?

April 25th I sent in the home survey results. Then they asked for some followup detail photos on May 11th.

But the engineering design results are very different than I expected, so I'm waiting for a reply on those things.

 

[Kbra]

Like everyone uses Gmail?

April 25th I sent in the home survey results. Then they asked for some followup detail photos on May 11th.

But the engineering design results are very different than I expected, so I'm waiting for a reply on those things.

You're response rate from them is impressive given how i was before you and still no response expected for another month or two. Tesla Referral program for the win again!

 

[HankLloydRight]

You're response rate from them is impressive given how i was before you and still no response expected for another month or two. Tesla Referral program for the win again!

I'm not sure about the before me part, I've been working with Tesla Energy on this since October.

 

[KyleDay]

Has anyone recently had any contact with Telsa Energy regarding the referral award powerwalls and if they are eligible to swap for Tesla service credit? I have heard tesla "paused" that for further consideration but haven't heard anything since.

I earned a powerwall in the last referral round and filled out the home address survey in March. I know no powerwalls are expected to ship until late this year, but I'd love to trade for credit sooner than later if possible.

 

[digitalboi]

Has anyone recently had any contact with Telsa Energy regarding the referral award powerwalls and if they are eligible to swap for Tesla service credit? I have heard tesla "paused" that for further consideration but haven't heard anything since.

I earned a powerwall in the last referral round and filled out the home address survey in March. I know no powerwalls are expected to ship until late this year, but I'd love to trade for credit sooner than later if possible.

So we actually purchased two PW as part of our solar project in March, I was told by my PW POC yesterday that they have stopped production on all Powerwalls so they can focus on meeting model 3 numbers. They are currently not taking any new orders for PW installs and for those that have orders outstanding it will be sometime in 2019 before we receive them. So for those of you waiting on a referral I can imagine you won’t be seeing them for 12-18 months as they work through the backlog of customers that have already paid...

 

[Yinn]

. So for those of you waiting on a referral I can imagine you won’t be seeing them for 12-18 months as they work through the backlog of customers that have already paid...

Given that I’m waiting for awards from 2016, I’d say that’s being highly optimistic.

 

[KyleDay]

So we actually purchased two PW as part of our solar project in March, I was told by my PW POC yesterday that they have stopped production on all Powerwalls so they can focus on meeting model 3 numbers. They are currently not taking any new orders for PW installs and for those that have orders outstanding it will be sometime in 2019 before we receive them. So for those of you waiting on a referral I can imagine you won’t be seeing them for 12-18 months as they work through the backlog of customers that have already paid...

Yes this is knew. I don't want a powerwall. I want to just tell tesla energy to give me the credit in lieu. Makes no sense to have to wait until they begin manufacturing next year for me to wait to then to get credit.

 

[MelaniainLA]

Yes this is knew. I don't want a powerwall. I want to just tell tesla energy to give me the credit in lieu. Makes no sense to have to wait until they begin manufacturing next year for me to wait to then to get credit.

Agreed. I live in a rental apartment. Management won’t allow installation of solar OR Powerwall. Even if they did, the electrical room has no wall space thanks to all the meters and transformers. I keep telling them “I have no need for a Powerwall — don’t even try giving it to me — give me a credit instead!” And I’m met by confusion or complete silence. Ugh.

 

[patrick40363]

I think if you have 2 or more powerwall awards they might give you a credit. I have been waiting for my one award for a year and nothing. I would prefer a credit or install whichever is sooner. It is a poorly run program.