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Powerwall for Sale, $5500

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Darn I got 3 Powerwalls recently but they said you cannot apply the $ Toward a car! Otherwise I would have gotten a 3 for nearly nada! Oh well!
This was the reply I got today from my Tesla energy Advisor

Some customers can indeed opt for $5,500 Tesla credits instead of receiving the Founder Series Powerwall however these are Tesla customers whom live in areas where Tesla cannot service or live in a property type that does not allow for the Powerwall to be installed."

@MelaniainLA, not sure if applying three $5,500 PW2 credits would have been enough to buy a M3 for nearly nada
 
Simply a deposited check, and then of course you have the powerwall in hand. "Look IRS auditor, this is what I bought with that".

Emails with the seller, etc. of course would help your case, but my CPA is excellent, and he thought this was pretty cut, dry, and bland.
So then the onus to report the income to the IRS falls on the seller too. This makes sense then.
 
I hope the Next Gen Roadster awards aren't this complicated to sell!
If award winners are having to facing all these complications with the PW2, its going be a nightmare trying to sell those Roadster awards. Some award winners might not be able to afford the taxes (1099) on those cars. With each Roadster valued at $250,000, income taxes will be minimum of 24% federal taxes ($60,000) and whatever state taxes they owe based on state. This isn't even taking in to account sales tax, DMV registration fees amd documentation fees.
Oh boy, some award winners are in for a surprise.
 
If award winners are having to facing all these complications with the PW2, its going be a nightmare trying to sell those Roadster awards. Some award winners might not be able to afford the taxes (1099) on those cars. With each Roadster valued at $250,000, income taxes will be minimum of 24% federal taxes ($60,000) and whatever state taxes they owe based on state. This isn't even taking in to account sales tax, DMV registration fees amd documentation fees.
Oh boy, some award winners are in for a surprise.


Yeah, but you get free supercharging for life!
 
I wouldn't be surprised if it follows the same method - 1099 follows to whoever titles the car.

Actually, I think it will be the opposite -- Tesla will just send 1099s to the award winners when they claim the award on their Tesla Account, without regard to who the car is actually sold to. There's actually significantly more paperwork in the PW2 award and install than just buying a car.
 
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Simply a deposited check, and then of course you have the powerwall in hand. "Look IRS auditor, this is what I bought with that".

Emails with the seller, etc. of course would help your case, but my CPA is excellent, and he thought this was pretty cut, dry, and bland.

I'm in the tax industry and also agree. I would not worry about the 1099. Sure it creates a paperwork headache, but clearly this is a purchase transaction for the buyer- pay X get right to receive Y. In general with some exceptions, buying something below market value does not create a tax liability on the buyer. Even assuming worst case (i.e. you get an overzealous but not-too-smart IRS examiner), you're only on the hook for the tax on the difference between the 1099 amount and the amount you pay, and then it would be up to you whether that small amount is worth going to court for.

Now, the seller on the other hand absolutely does need to include this as income. Even though the seller won't receive a 1099, seller got cash for something that he/she had zero basis in. Income would be either X or Y; a strong argument could be made for X (amount buyer pays), though IRS could go for Y (1099 amount).
 
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