Tesla Referral Program

[Chopr147]

Good point on the referrals. I mentioned a while back to Model3 owners channel which I think now is Teslaownersoonline or something (stopped watching) that the excess referrals cheapened his content to me. He was respectful but argued he does free advertising and information for Tesla w/o Tesla paying for advertising. I saw his point but still felt his content suffered

 

[MP3Mike]

Personally, I'd like to see the referral program limited in some way to prevent that (say no more than 10 referrals per year or something). It allows Tesla to limit the pain/cost of referral prizes and yet still allows that Tesla owner who advocates to a friend/colleague to buy a Tesla to get a little something for it (which was always the point of the program).

It has been limited now since the only thing you get is 1,000 free Supercharging miles and an entry into drawings for a free Model Y once a month and a Roadster once per quarter. (And you can only win one Model Y and one Roadster regardless of the number of referrals you have.)

So the referral expenses are pretty much capped at this point.

 

[Yinn]

It has been limited now since the only thing you get is 1,000 free Supercharging miles and an entry into drawings for a free Model Y once a month and a Roadster once per quarter. (And you can only win one Model Y and one Roadster regardless of the number of referrals you have.)

So the referral expenses are pretty much capped at this point.

From an expense side yes.

But I think from a customer perspective it's still a little lacking. It was a real treat to get a radio flyer from Tesla. My friends hear about it all the time when they come over. It was a neat gesture that quite frankly started converting my kids to Tesla fans really early on.

Even things like wheels are conversation starters. Oh Tesla gave that to me. Really? Yea. Free! For referrals.

I don't recall the last time I bragged about getting entry into a raffle for a Model Y or Roadster. Maybe if I'm the one that actually won, but for the cost of a Model Y how many radio flyers could you buy to get people talking about the company?

 

[Fiver]

Maybe if I'm the one that actually won,

It's been ages since the new referral program raffle prize went into effect, and I'm shocked that only 1 person has come forward and said they actually won a car. Where are all the winners?

 

[Yinn]

It's been ages since the new referral program raffle prize went into effect, and I'm shocked that only 1 person has come forward and said they actually won a car. Where are all the winners?

In fairness, how many people are members of the forums vs how many total Tesla owners so far?

Wasn't it implemented October 2019? If so, there would only be 10 winners. I would think it's pretty reasonable that only 10% of the winners have come forth and said they won.

 

[MelaniainLA]

It's been ages since the new referral program raffle prize went into effect, and I'm shocked that only 1 person has come forward and said they actually won a car. Where are all the winners?

They’re all in their Accountants’ offices panicking that they owe federal and state tax on the value of the car they just “won”. If you’re high income in California, that could be well over 50% of the retail value of the car.

 

[bkp_duke]

They’re all in their Accountants’ offices panicking that they owe federal and state tax on the value of the car they just “won”. If you’re high income in California, that could be well over 50% of the retail value of the car.

Yep, this is where a great CPA or Tax Attorney are worth every penny you pay them.

They come up (legally) with things like counting your "time" for "advertising" and the like as an expense so that you "worked" for the car, and all kinds of crazy loopholes like that to reduce the value of said gift.

 

[Yinn]

Yep, this is where a great CPA or Tax Attorney are worth every penny you pay them.

They come up (legally) with things like counting your "time" for "advertising" and the like as an expense so that you "worked" for the car, and all kinds of crazy loopholes like that to reduce the value of said gift.

Yes your honor. My Model S was a deductible expense. Without it, I would not have been able to make the referral that made me eligible for the free car. So, as you can see despite winning a Model Y for "free" I technically generated no income. Yes your honor, this is in addition to the Model X that was also depreciated under the heavy vehicle loop...provision. So that is my justification for claiming a business loss for the year and therefore appealing my 10 year tax evasion sentence....

 

[bkp_duke]

Yes your honor. My Model S was a deductible expense. Without it, I would not have been able to make the referral that made me eligible for the free car. So, as you can see despite winning a Model Y for "free" I technically generated no income. Yes your honor, this is in addition to the Model X that was also depreciated under the heavy vehicle loop...provision. So that is my justification for claiming a business loss for the year and therefore appealing my 10 year tax evasion sentence....

Guess you don't have a CPA or Tax Attorney. That's one of the joys of having them, they won't sign your returns (i.e. take responsibility) unless they feel like everything in the return is "justifiable". Sure, you can bypass them, but that would defeat the point of hiring them in the first place.

 

[Yinn]

Guess you don't have a CPA or Tax Attorney. That's one of the joys of having them, they won't sign your returns (i.e. take responsibility) unless they feel like everything in the return is "justifiable". Sure, you can bypass them, but that would defeat the point of hiring them in the first place.

It’s a cheap peace of mind for sure. Anyone with more than a standard itemization should definitely use one.

But you’d be surprised at some of the things people try...hence why my joke was appealing an existing ruling.

 

[HankLloydRight]

and I'm shocked that only 1 person has come forward and said they actually won a car. Where are all the winners?

Who was that and where?

Yep, this is where a great CPA or Tax Attorney are worth every penny you pay them.
They come up (legally) with things like counting your "time" for "advertising" and the like as an expense so that you "worked" for the car, and all kinds of crazy loopholes like that to reduce the value of said gift.

Have you ever been audited? IRS auditors are not dummies, and I can't see any auditor falling for this flimsy explanation for not paying taxes on a referral award, no matter how good your CPA or tax accountant is supposed to be or how much you pay them. And you can't count your "time" as an expense. That's well established. You're going to get a 1099-MISC for the income for the value of the car. It's not a "gift." Unless you can provide ACTUAL expenses as part of an ongoing business related to that income, you're not going to be able to just write it off as you suggest.

 

[bkp_duke]

Who was that and where?



Have you ever been audited? IRS auditors are not dummies, and I can't see any auditor falling for this flimsy explanation for not paying taxes on a referral award, no matter how good your CPA or tax accountant is supposed to be or how much you pay them. And you can't count your "time" as an expense. That's well established. You're going to get a 1099-MISC for the income for the value of the car. It's not a "gift." Unless you can provide ACTUAL expenses as part of an ongoing business related to that income, you're not going to be able to just write it off as you suggest.

Yes, I've been audited (and won back more than originally claimed).

And no, I don't make the determinations of what I will write off and expense, etc. I completely leave that to my CPA and trust his judgement.

Also, anyone in our presumed tax bracket that isn't running ongoing expenses through a business is crazy. I try to never claim anything as personal income if at all possible.

 

[Fiver]

Who was that and where?

The only one I am aware of, and it's still a little sketchy.

 

[HankLloydRight]

Also, anyone in our presumed tax bracket that isn't running ongoing expenses through a business is crazy. I try to never claim anything as personal income if at all possible.

Right, but if you're already running ongoing expenses through a business, you're already deducting it from some other income somewhere. You can't do that twice just because you have more income from an award (unless you're committing tax fraud). And the IRS doesn't care if it's business income or personal income, you're still going to pay the taxes on the net income.

 

[willow_hiller]

The only one I am aware of, and it's still a little sketchy.

At least one winner sold their car on this forum: Selling Tesla Model Y

I think most people just tend to keep it quiet.

 

[Fiver]

At least one winner sold their car on this forum: Selling Tesla Model Y

Wow, that thread was quite the roller coaster.

 

[willow_hiller]

While I've discovered this thread... Does anyone know how the Solar Referrals as of 7/17/2020 work? I'm guessing nobody has had the opportunity to order and have their systems turned on after the referral program changed...

It's now a $100 reward for the person who makes the order and $400 reward for the person who gave the referral, but it doesn't state whether these awards are available in cash or via Tesla credit (toward vehicles, Tesla Shop, or further Energy orders?). Additionally there's the 1 Powerwall prize after 10 referrals now. I wonder if that includes the Gateway and installation credit as the previous prize seemed to.

 

[MelaniainLA]

Yes your honor. My Model S was a deductible expense. Without it, I would not have been able to make the referral that made me eligible for the free car. So, as you can see despite winning a Model Y for "free" I technically generated no income. Yes your honor, this is in addition to the Model X that was also depreciated under the heavy vehicle loop...provision. So that is my justification for claiming a business loss for the year and therefore appealing my 10 year tax evasion sentence....

Yeah, this.

The argument that you had to work to earn referrals therefore it's untaxable doesn't work -- because you get paid for work and you pay tax on that work. Now if you gave test drives in your Tesla to prospective referral customers and documented the miles you spent on those referral test drives you could conceivably deduct that against the 1099, however I suspect it would be a minuscule number of miles.. plus they occurred in a much earlier tax year and not sure the expense would get carried over the the year in which they finally *sugar* the Roadster. You just have to suck it up and pay the tax. If you're not rich and can't simply drop $100k or more in tax to get a "free" car, you might have to go without it...

 

[Product_Guy]

While I've discovered this thread... Does anyone know how the Solar Referrals as of 7/17/2020 work? I'm guessing nobody has had the opportunity to order and have their systems turned on after the referral program changed...

It's now a $100 reward for the person who makes the order and $400 reward for the person who gave the referral, but it doesn't state whether these awards are available in cash or via Tesla credit (toward vehicles, Tesla Shop, or further Energy orders?). Additionally there's the 1 Powerwall prize after 10 referrals now. I wonder if that includes the Gateway and installation credit as the previous prize seemed to.

My understanding is that it is a check sent to you after the system gets activated.

I am less sure about the Powerwall award, but would guess that the gateway is included but not installation.

 

[jeremymc7]

Would appreciate any referrals. Even one is helpful.

Earn Free Supercharging Miles or a $100 Cash Award

jeremy75603


Thanks all. Take care. Stay safe.