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Model 3 For Sale (Phoenix)
- Thread starter tix
- Start date
And if OP is the person who picks up the car, how does that go against the part you quoted?
deonb
Active Member
Either OP (tix) needs to drive the car off the lot in which case he can claim the tax credit, but then he sells a used car.
-or-
He doesn’t claim the tax credit and sells the car as new.
But, he can’t claim the tax credit AND sell the car as new.
Did OP edit something? I don't see where he's claiming the car is new. And even if he did, are you saying he can't say the car is "like new"? I'm fairly certain at worst that would be considered puffery rather than misrepresentation. But it doesn't matter anyway. This wouldn't be tax fraud, not even close to it.
deonb
Active Member
“Ready to be picked up from Tesla” implies that he’s selling this as a car that he hasn’t driven before.
It will be interesting to see what happens when the 200k car limit is reached. M3 flippers might disappear, Demand for a new Tesla should decrease putting pressure on Tesla/GM to lower prices. Some M3 reservations might be canceled. When M3 AWD is released, flippers will start again, and early M3 resale prices might drop. I'm sure lobbyist are working hard to increase the limit.
No, but I can read IRS tax documents. Read my original post where I mentioned this again. As I said, the tax code explicitly states that it is not available if a person is buying it to resell it, so filing for the credit when you explicitly are doing what the code says makes you unable to file for it is clearly problematic - thus brings about the risk of tax fraud. I posted the link to the tax code so you can read it if you do not believe me.
If you have something intelligent to add on the matter feel free to do so. Or are you just looking to start arguments?
Reservations selling for over $1k is different from a vehicle selling for a premium. If a person buys a reservation, and is the first owner, they can file for the $7500 tax credit. If someone else buys a vehicle for $60k and you buy it from them for $61k then you can't file for the tax credit - so you are effectively paying an $8500 premium. Some people may be willing to do that, but it doesn't seem like there are nearly as many as the flippers expected.
Just reposting the snippet I posted earlier:
https://www.irs.gov/pub/irs-pdf/i8936.pdf
"The following requirements must be met to qualify for the credit.... You acquired the vehicle for use or to lease to others, and not for resale."
Person 1 buying the car with the intent to sell to person 2 seems to rule both out from filing for the tax credit. Person 1 bought to resell, and person 2 was not the first owner.
If for some reason I wanted a model 3, I would only be looking at buying a reservation, not an already purchased one.
From what I've seen from other people doing these transactions - if it hasn't been registered yet, and the person who buys it from the OP is listed as a co-owner on the initial registration (co- since Tesla apparently requires the reservation holder to be on the registration), then the person who buys it from the OP could file for the tax credit. If it is registered by the OP first, then the second buyer can't. And technically the OP shouldn't, since it was bought for resale. Of course, if audited, a person could try claiming that they didn't buy it with the intent to resale but had a change of heart - but posting the car for sale before they have picked it up kind of undermines that.
Implies TO YOU.
I'm done here. This discussion is nonsense and is perpetuated by people who are, I don't know, jealous? that others are able to take advantage of a fairly unique situation.
ACA Man
Member
I think people should be nice and not share their thoughts on M3 for sale thread.
It is going to be between M3 owner(s) and the IRS so we all should just leave them alone.
Just my $0.02.
It is going to be between M3 owner(s) and the IRS so we all should just leave them alone.
Just my $0.02.
deonb
Active Member
Yes to me.
But I might be totally wrong. Maybe the OP bought the car last year, drove it around for 15'000 miles, had a new drivetrain installed and that's why it's now available for "pickup from Tesla" for the low low price of $61k.
It could happen, sure...
nickb411
Member
Here's the best advice I can give: Talk to your tax accountant. The reality is, every single one of them will say that you will have to pay back the $7500 credit if you get audited and they find out you sold the car shortly after taking ownership. 100% of the time. So basically you are gambling that you won't get audited.
Good news - You get sent to jail for not reporting income...you get penalized for taking too many deductions.
Neither are gambles I'm willing to take.
Nick
Good news - You get sent to jail for not reporting income...you get penalized for taking too many deductions.
Neither are gambles I'm willing to take.
Nick
deonb
Active Member
Which then comes back full circle to my original point. If you're just taking a deduction with the hopes that you don't get audited - why buy the car in the first place? Go to a Tesla showroom, write down one of their vins and deduct it, and hope you don't get audited.
Same boat, less effort.
Pinot.Noir
Member
If the same VIN is deducted by two different returns, then both people are getting audited.
This is just wrong on so many levels. Also, you need to stop watching movies if you think reporting this tax credit will land you in jail in the event you are audited and the IRS determines that it isn't a legitimate credit.
deonb
Active Member
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