Texas Model Ys

[Brandon#]

Quick question to TX peeps, which auto insurance is rated higher/better in TX for the Teslas ? Obviously we can't get the Tesla insurance

I don’t know about their rating, but check out Progressive. They were about 40% cheaper than Geico when we checked.

 

[TC_HTX]

We received our VIN today in Houston for an order back in September. LR/Blue/Induction/White interior

 

[SA_Buckeye]

Originally ordered a blue MY in September but then revised it on October 7th to a red LR w/ Induction wheels. Got a 60xxx VIN on October 12th. Tentative delivery for the last week in October in Austin.

 

[empiredown]

^^^

SS

 

[nimsum]

Dallas Area:

Order Date: 03 Oct
VIN Assigned: 12 Oct
VIN: ...MF063xxx (M => 2021 year model)

Still Waiting on Delivery Date

 

[Protect1989]

Question:

for taxes, I know if you trade in a vehicle, your taxes are based on the price difference between the vehicle you trade in and the purchase price of the new vehicle.

however, what if the vehicle you are trading in is worth more than the vehicle you are purchasing? Is there any tax break or do you pay the full tax rate on the purchase price of the new vehicle?

 

[Cigar Man]

Ordered my MY on September 5 and received my VIN today with a projected delivery date around November 1. I live way down in the Valley, so it will be an overnight trip to San Antonio to pick it up.

Blue/black, Gemini wheels, no hitch, no FSD. VIN 63XXX

 

[jeffbco]

Question:

for taxes, I know if you trade in a vehicle, your taxes are based on the price difference between the vehicle you trade in and the purchase price of the new vehicle.

however, what if the vehicle you are trading in is worth more than the vehicle you are purchasing? Is there any tax break or do you pay the full tax rate on the purchase price of the new vehicle?

So you're getting a new Model Y + cash back from Tesla?? Assuming Tesla is giving you the credit for the trade then you only pay the 6.25% Texas sales tax on the difference, in this case you described there is no sales tax difference due.

 

[Protect1989]

So you're getting a new Model Y + cash back from Tesla?? Assuming Tesla is giving you the credit for the trade then you only pay the 6.25% Texas sales tax on the difference, in this case you described there is no sales tax difference due.

Remove Tesla from the equation at all. This isn’t a specific use case.

Example:
If my current vehicle is worth 40k and my new vehicle purchase is 50k, I would only be taxed on the difference between the two (10k). This is the way it currently works.

However, if my current vehicle is worth 50k and the new vehicle purchase is worth 40k, do I get taxed on the difference between the two (10k)

OR

Since the new vehicle purchase is less than the value of the trade in, do I get taxed on the full value of the new vehicle (40k)

 

[SA_Buckeye]

Remove Tesla from the equation at all. This isn’t a specific use case.

Example:
If my current vehicle is worth 40k and my new vehicle purchase is 50k, I would only be taxed on the difference between the two (10k). This is the way it currently works.

However, if my current vehicle is worth 50k and the new vehicle purchase is worth 40k, do I get taxed on the difference between the two (10k)

OR

Since the new vehicle purchase is less than the value of the trade in, do I get taxed on the full value of the new vehicle (40k)

In your example of trading in a vehicle worth more than the new purchase, I don't think you'd pay sales tax for that transaction since the tax credit would offset it. But I believe you would have to pay taxes on the $10,000 as a capital gain when filing your annual taxes to the IRS as it would be seen as income generated.

 

[Protect1989]

In your example of trading in a vehicle worth more than the new purchase, I don't think you'd pay sales tax for that transaction since the tax credit would offset it. But I believe you would have to pay taxes on the $10,000 as a capital gain when filing your annual taxes to the IRS as it would be seen as income generated.

There’s just no winning! Either way some form of government will be getting paid money
Thanks for the explanation and help

 

[Big Dog]

In your example of trading in a vehicle worth more than the new purchase, I don't think you'd pay sales tax for that transaction since the tax credit would offset it. But I believe you would have to pay taxes on the $10,000 as a capital gain when filing your annual taxes to the IRS as it would be seen as income generated.

Uh, I don't think so. Any so-called capital gain would be on the specific asset, in this case, the car currently worth $50k. Now, I'm betting the ranch that the original cost of that car was more than $50k, so there is not gain -- its a loss. For example if the current car originally cost $65k, but is now worth $50k for a trade-in, the loss is $15k.

OTOH, if the $50k car is a collectors item and originally cost $40k, there would be a $10k gain on the appreciation. But appreciating assets are only in Elon's dreams.

Again, the fact that you are trading in one asset for another like asset does not move the federal cost basis over -- it stays with the original asset, in this case, the $50k car.

 

[fishhawk]

Got my VIN yesterday. 63XXX. White/Black, Gemini Wheels, no tow hitch or FSD. SA said the born-on date was yesterday, delivery is tentatively set for Nov 1.

 

[Robbmatt]

I ordered on 10/3 and got my VIN this morning!

October 28th is my delivery date!

 

[SA_Buckeye]

Uh, I don't think so. Any so-called capital gain would be on the specific asset, in this case, the car currently worth $50k. Now, I'm betting the ranch that the original cost of that car was more than $50k, so there is not gain -- its a loss. For example if the current car originally cost $65k, but is now worth $50k for a trade-in, the loss is $15k.

OTOH, if the $50k car is a collectors item and originally cost $40k, there would be a $10k gain on the appreciation. But appreciating assets are only in Elon's dreams.

Again, the fact that you are trading in one asset for another like asset does not move the federal cost basis over -- it stays with the original asset, in this case, the $50k car.

I forgot about depreciation so yeah that sounds right. As long as the original cost basis is more, then Protect1989 should be good on not having to pay taxes. Although it shouldn't matter if it's a like asset either way. Like assets start getting into 1031 Exchange territory which is more about real estate.

 

[jeffbco]

Question:

for taxes, I know if you trade in a vehicle, your taxes are based on the price difference between the vehicle you trade in and the purchase price of the new vehicle.

however, what if the vehicle you are trading in is worth more than the vehicle you are purchasing? Is there any tax break or do you pay the full tax rate on the purchase price of the new vehicle?

While not specifically stated, I believe your question is about Texas sales tax on a purchase with a trade. You already paid sales tax on the trade vehicle (either at date of purchase or when the car was titled in Texas) so you won't be paying sales tax on the trade and in fact you receive credit for the trade in calculating sales tax on the Tesla. Since the trade allowance exceeds the purchase price of the new purchase you shouldn't have any sales tax due when you go to register the car. Any income tax issues are moot as already explained in another post. Go to Section 38 on this form and fill in the blanks - your ultimate answer will be revealed at the tax assessor's office.

https://d3eaozktcyljdh.cloudfront.n...2MHqAI/1602119414/public/form_files/130-U.pdf

 

[Jamesthemames]

Originally ordered a blue MY in September but then revised it on October 7th to a red LR w/ Induction wheels. Got a 60xxx VIN on October 12th. Tentative delivery for the last week in October in Austin.

Also in Austin. Placed order 9/29 and delivery is 10/31. Can’t wait!

 

[todd_fuller]

In Austin here, ordered 9/2, got my VIN on Friday w/ an expected delivery date of Nov 5th. It's been a bit of a wait.

 

[jshmrtnDFW]

Ordered white MY LR on 10/5. Black interior, induction wheels, autopilot. Recent vids I’ve seen make it look like quality issues are being dealt with, so I’m hoping for minimal issues.

SA I spoke with when I did my test drive a couple weeks ago mentioned the first month of the quarter was focused on international deliveries, so I expect later delivery rather than sooner (currently 3-7 weeks).

Just got my 2021 VIN: 654XX!

 

[Cigar Man]

Okay - I now have a delivery date for my blue MY - November 7 at the San Antonio SC.

Blue/black, Gemini wheels, no hitch, no FSD. VIN 63XXX