Custom 21" Arachnid wheels -- your choice of color

[MZP95]

@Hank, just fair disclosure. You will be sent a 1099 as this will be processed as a taxable gift from Tesla for customer referrals. With that being said you would really need to get rid of them for $5,000.00 or so minimum. I too anticipate winning these wheels and I am planning with my tax professional to determine actual impact of winnings. However, we need to see what value Tesla establishes with the Wheel and Tire package and take it from there.

Can anyone confirm the value of these Wheels? Also I am assuming tires will be approx. valued at $250.00 a piece.

 

[FlatSix911]

Here are the current Tesla options and pricing for 21" wheels and tires ...

 

[HankLloydRight]

I emailed Tesla concerning the taxable 1099 situation. Until I hear back and know my tax liability better, I think I'm going to have to unfortunately withdraw this offer.

I'm sorry that I just didn't think ahead in that way, which is weird for me, since I spend a lot of time doing taxes for myself and two other businesses. Since we never had a tax liability for the $500 "service credits" from last year's referral program, it never occurred to me that these items would trigger that, and obviously, I can't really sell these wheels at a loss.

 

[Electric Joe]

I think everyone here would understand your reasoning, Hank. No problem. This thread will still be helpful for discussing details about the prize and potential sales or obstacles to sales.

 

[cman8]

If anyone is interested in a set of these wheels, PM me also. Wheels look awesome but I like my wheels already.

 

[FlatSix911]

I will also have a set of wheels available... for half price $3,000

 

[pox]

I will have a set for sale too, pm me with any offers. I can't make use of them with the hit I would take in range. My closest centers are Salt Lake and Denver.

 

[playoutside]

I would like to buy a set too!

 

[HankLloydRight]

Once I get a response from Tesla concerning the tax issues, I'll post again with the details of my set for sale!

 

[LVSP85D]

Pls keep us posted!

 

[TS70]

Pls keep us posted!

 

[TS70]

I did some researching of my own and unless the amount is greater than $14k, we should be exempt no? They can still give you the tax form but since it's below (or assuming) $14k then we don't need to pay taxes on it as we should be exempted from it. What do you guys think or am I understanding it wrong?

Do I have to pay gift tax when someone gives me money?

 

[bkp_duke]

I did some researching of my own and unless the amount is greater than $14k, we should be exempt no? They can still give you the tax form but since it's below (or assuming) $14k then we don't need to pay taxes on it as we should be exempted from it. What do you guys think or am I understanding it wrong?

Do I have to pay gift tax when someone gives me money?

That's not the same thing as a corporate gift, very different tax structure. It's usually considered 1099-MISC and must be reported on anything over $600 in value.

How Much State & Federal Tax Is Owed on Sweepstakes Winnings?

 

[TS70]

Oh darn....thanks for the clarifications!

 

[SD Diver]

Here are the current Tesla options and pricing for 21" wheels and tires ...

View attachment 182029

Wow - mine with 2000 miles are half this price!

 

[Mr So Chill]

If anyone is willing to sell for the super-low price of $1500, I want a set. Its not worth any more than that to me.

 

[HankLloydRight]

If anyone is willing to sell for the super-low price of $1500, I want a set. Its not worth any more than that to me.

The tax is likely to be more than that, so good luck finding a set!

 

[bkp_duke]

The tax is likely to be more than that, so good luck finding a set!

The key here is if Tesla is going to 1099-MISC you or not.

Some companies pay the taxes on promotional items they give away like this, some do not.

Example, about 10 years ago I won a very nice Espresso machine from AMEX (worth about 2k). AMEX took care of the taxes on that, but they were by no means required to do so.

What has Tesla done for past promotions? Did they 1099-MISC people? Did the cover the taxes? Some of both? (i.e. inconsistent)

 

[HankLloydRight]

I've also won prizes from AMEX where they grossed-up the prize to pay the taxes.

What has Tesla done for past promotions? Did they 1099-MISC people? Did the cover the taxes? Some of both? (i.e. inconsistent)

There haven't been real prizes yet to know what happens. In the past, the only thing was service credit which was not taxed, and some cars, where the taxes were the responsibilty of the winner -- except in the "Model S trade up" case, Tesla may have paid the tax because the winner didn't realize the tax consequences on the delta between the trade-in and the MS P90DL.

So we don't know what Tesla will do. I sent them an email asking when the wheels became a prize, but they never responded.

 

[FlatSix911]

That's not the same thing as a corporate gift, very different tax structure.
It's usually considered 1099-MISC and must be reported on anything over $600 in value.

How Much State & Federal Tax Is Owed on Sweepstakes Winnings?

Thanks for the clarification on the tax code ...
If I have to pay taxes, I will keep my new set of wheels.

If you win a sweepstakes or contest prize, you will owe income taxes to Uncle Sam and perhaps your state. Prizes are considered taxable income regardless of whether the prize is in the form of cash, trips or merchandise.

If you win a prize valued over $600, the sweepstakes or contest sponsor must report the value to you and the Internal Revenue Service on a Form 1099-MISC. You’re still supposed to report and pay tax on prizes under $600.