"Also, at this time I do want to make sure you are aware, Tesla will be awarding you the following:
v Founder Series Powerwall(s) ($6,500)
v Energy Gateway ($1,100)
v Installation Credit ($1,000) per install
Any remaining costs will be an out of pocket expense."
Email from Tesla as I proceed with referral powerwall installation.
The most important question is: Would Tesla be using the cost of the powerwall unit alone ($6,500) when sending the 1099? Or would they be taking the cost of all three $8,600 (powerwall, gateway and credit) in their 1099 calculation?
Also, would referral Powerwall and its associated installation cost be deductible on ones federal taxes? The federal incentive tax credit is 30% this year.
So a buyer would pay you $5,500 and also pay taxes on the 1099? If so, then wouldn't buying a referral powerwall from awardees make it more expensive for the buyer than buying from Tesla directly for $6,500?
Federal marginal tax rate of 37% and state marginal tax rate of 13% totals 50%. The buyer would be paying $4,300 in taxes on that 1099 income which Tesla reports.
Total cost to buyer: $5,500 paid to above seller + $4,300 in taxes =$9,800.
I'm sorry but this doesn't come out cheaper for anyone.
Please correct me if in wrong.
Buying directly from Tesla for $6,500 and getting the federal incentive tax credit (30%) makes effective cost to buyer $4,550.
Buying from above awardee costs $4,300 in taxes alone, not even counting the $5,500 asking price.
I understand people want to make a profit from their referral awards, so the most anyone could/should offer for buying is $250 ($4,550-$4,300).
Is it safe to assume that awardees that are not getting the referral powerwalls installed are "stuck" with this award and can't really do anything with this award?