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

[HankLloydRight]

I am going through this process now. I purchases from person on PayPal using pay by invoices . And they gifted me the powerwall so there is a way to gift these items . Now i wonder whether i can get 30 percent fed tax credit on my PayPal invoice cost .

Yes, Tesla recently changed their policy on "gifting" the PW2 awards. I am not a tax professional nor am I giving ANY tax advice, but my tax professional told me that yes, even if sold privately, one would still qualify for the 30% energy tax credit, if you are eligible to receive it.

The other issue that buyers and sellers must be aware of is that Tesla will send out a 1099-Misc for the value of the award, so someone (whoever gets and/or fills out the required W-9) is going to be paying federal (and state) income taxes on value of the award.

 

[Jae001]

How does everyone get so many referrals filled. Is this mostly friends and family or do people have websites or social media accounts that strangers click on your referral link?? I would love to get a few powerwalls.

 

[HankLloydRight]

There are no longer any Powerwall awards from referrals. Each referral only gets you and the buyer 1000 miles of free supercharging and/or entry into a lottery to win a Model Y (monthly) or a Next Gen Roadster (Quarterly). Although we've yet to hear of anyone winning those prizes the last few months.

 

[zanary]

Yes, Tesla recently changed their policy on "gifting" the PW2 awards. I am not a tax professional nor am I giving ANY tax advice, but my tax professional told me that yes, even if sold privately, one would still qualify for the 30% energy tax credit, if you are eligible to receive it.

The other issue that buyers and sellers must be aware of is that Tesla will send out a 1099-Misc for the value of the award, so someone (whoever gets and/or fills out the required W-9) is going to be paying federal (and state) income taxes on value of the award.

that is all correct. At the time you get your cost proposal (ie, the design), attached to the Docusign forms is the W9 that you MUST complete to move on to the next step.

 

[HankLloydRight]

that is all correct. At the time you get your cost proposal (ie, the design), attached to the Docusign forms is the W9 that you MUST complete to move on to the next step.

The question is, can anyone fill out the W-9, or is it 'fixed' to the owner of the installation property? Meaning, is it possible for the seller to sign the W-9 and pay the tax? Or is it always the buyer? (I filled one out for my PW2 award, but I don't remember if it was changeable).

 

[Jae001]

There are no longer any Powerwall awards from referrals. Each referral only gets you and the buyer 1000 miles of free supercharging and/or entry into a lottery to win a Model Y (monthly) or a Next Gen Roadster (Quarterly). Although we've yet to hear of anyone winning those prizes the last few months.

OK, so how about the referrals, how is everyone getting people to use them so they get something free from Tesla? Friends, family, strangers?

 

[redan]

The question is, can anyone fill out the W-9, or is it 'fixed' to the owner of the installation property? Meaning, is it possible for the seller to sign the W-9 and pay the tax? Or is it always the buyer? (I filled one out for my PW2 award, but I don't remember if it was changeable).

What I expect will happen is that the W-9 will be filled out by the recipient of the PowerWall "gift". We're in the process of getting two PowerWalls installed and they asked that my wife "gift" her PowerWall award to me, so there would be just one set of paperwork. As part of the docusign package (we're also getting a solar install), I had to sign a bunch of documents, including a W-9 for the PowerWalls, that I signed myself.

I think some of the people buying "gifted" PowerWalls for $5500 will be in for a surprise when they also have to pay income taxes on $6,500 of income. They could wind up paying more than if they bought them directly from Tesla and have no issues with claiming the 30% credit either.

 

[MorrisonHiker]

What I expect will happen is that the W-9 will be filled out by the recipient of the PowerWall "gift". We're in the process of getting two PowerWalls installed and they asked that my wife "gift" her PowerWall award to me, so there would be just one set of paperwork. As part of the docusign package (we're also getting a solar install), I had to sign a bunch of documents, including a W-9 for the PowerWalls, that I signed myself.

I think some of the people buying "gifted" PowerWalls for $5500 will be in for a surprise when they also have to pay income taxes on $6,500 of income. They could wind up paying more than if they bought them directly from Tesla and have no issues with claiming the 30% credit either.

We only had one set of paperwork with multiple names, so there shouldn't be any need to 'gift' them to you.

 

[HankLloydRight]

As part of the docusign package (we're also getting a solar install), I had to sign a bunch of documents, including a W-9 for the PowerWalls, that I signed myself.

That's what I'm getting at. Does the docusign package allow anyone to fill out the W-9, or are parts of it locked (name, address, etc) and not modifiable? If that's the case then the buyer would be paying the taxes and no option for the seller to fill out the W-9 form.

 

[zanary]

That's what I'm getting at. Does the docusign package allow anyone to fill out the W-9, or are parts of it locked (name, address, etc) and not modifiable? If that's the case then the buyer would be paying the taxes and no option for the seller to fill out the W-9 form.

That's what I'm getting at. Does the docusign package allow anyone to fill out the W-9, or are parts of it locked (name, address, etc) and not modifiable? If that's the case then the buyer would be paying the taxes and no option for the seller to fill out the W-9 form.

I recall that all the W9 fields were open for edit, however that does not limit Tesla ability to enforce consistency amongst the agreement above the W9 in the same Docusign...

Either way, I would think that the receiver would be the one paying the taxes. I did in my case.

 

[MelaniainLA]

I recall that all the W9 fields were open for edit, however that does not limit Tesla ability to enforce consistency amongst the agreement above the W9 in the same Docusign...

Either way, I would think that the receiver would be the one paying the taxes. I did in my case.

Yep. The recipient gets the W9 form and enters their details. Once Tesla Energy agrees to transfer to a recipient, they can’t care at all about the original referral recipient. Can’t wait for my 3 to come in soon - install in 4 weeks!!

 

[patrick40363]

That's what I'm getting at. Does the docusign package allow anyone to fill out the W-9, or are parts of it locked (name, address, etc) and not modifiable? If that's the case then the buyer would be paying the taxes and no option for the seller to fill out the W-9 form.

Mine was filled out by Tesla and could not be edited.

 

[SoCalLawyer]

The income 1099 is offset by the 30% tax credit.
Overall at $5,500 it’s a good deal.

 

[mongo]

The income 1099 is offset by the 30% tax credit.

Overall at $5,500 it’s a good deal.

I'm fuzzy on the application of the various fees, but it doesn't look like 2nd hand is a good deal.

No sales tax:
Buy a PW for $6,500 total, no sales tax, 30% rebate:
$4,550 = 6,500*0.70

Buy a PW for $5,500, no sales tax, 24% tax bracket on $6,500, 30% rebate on $5,500:
$5,410 = 5,500*0.7+6,500*0.24

Buy a PW for $5,500, no sales tax, 24% tax bracket on $6,500, 30% rebate on total:
$4,774 = 5,500 * 1.24 * 0.70

With sales tax:
Buy a PW for $6,500 with 6% sales tax and 30% rebate:
$4,823 = 6,500*1.06*0.70

Buy a PW for $5,500, 24% tax bracket on $6,500 plus sales tax of 6%, 30% rebate on $5,500:
$5,404 = 5,500×0.7+6,500×1.06×0.24

Buy a PW for $5,500, 624% tax bracket on $6,500 plus 6% sales tax, 30% rebate on total:
$5,008 = (5,500+6,500×1.06×.24)×0.7

 

[HankLloydRight]

Keep in mind that these are the red "Founders" powerwalls.

We also don't yet know exactly how much Tesla is going to put on the 1099s.

 

[mongo]

Keep in mind that these are the red "Founders" powerwalls.

We also don't yet know exactly how much Tesla is going to put on the 1099s.

So founders aren't keepers?

 

[MelaniainLA]

Keep in mind that these are the red "Founders" powerwalls.

We also don't yet know exactly how much Tesla is going to put on the 1099s.

True. They COULD always value them at $200 apiece or some arbitrary number because they’re not for sale elsewhere! Good point!

 

[gmtom1]

Has anyone actually received a 1099 for a PW award yet from Tesla? From other threads, it seems like no one has received anything yet, and 1099s are past due from Tesla. They (Tesla) is in for a world of hurt once the IRS takes notice.

 

[Mickie]

Pff. I’m still being jerked around about one I won 2+ years ago. Their excuse has continuously been that they’re out of red power walls and can’t award a standard one, but will get back to me when they have more red ones in stock.

 

[Chasepam]

I just received notice that they have my powerwall and will ve members mentioneship it . That being said I have option to get my own electrician to install it. I will be putting it up for sale as I have no use for it.