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Buying a Tesla Model 3 with 2 owners for tax rebate

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I preordered the tesla however i am retired and do not pay taxes, i wanted to have somebody else buy the car for me in their name using a personal check in my name to pay for the car, or use my credit card to buy it. Then when they get the tax return, they would give it to me.

I know i cant guarantee that they would give me the return, whether they are family or close friend. I do however want to guarantee that they cant take the car from me since i will be paying for it.

Is this possible?

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Attempting a tax scam is one thing, posting about it is just stupid.

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Not to mention, why would anyone do this?

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Unless you have a priority reservation (current Tesla owner who stood in line on the first day), it's unlikely the tax credit will still be available when you take delivery of the car.

If it is, then you should speak with your financial advisor about withdrawing money from tax-advantages accounts in order to increase your tax liability that year.

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Tesla won't let you transfer the reservation anyway, so this idea is dead in the water.  The refund goes to whoever is on the title, and the tax credit is specifically not available for cars intended for resale.

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supersnoop00 said:   Unless you have a priority reservation (current Tesla owner who stood in line on the first day), it's unlikely the tax credit will still be available when you take delivery of the car.

If it is, then you should speak with your financial advisor about withdrawing money from tax-advantages accounts in order to increase your tax liability that year.

The full tax credit will most likely be available to a LOT more people than just Tesla owners who stood in line.  Most likely 25%-50% of current reservation holders (~450k-500k reservations as of last count), depending on how things shake out.
Partial credits of $3750 and $1875 could potentially be available to ALL current reservation holders.  Again, depending on how things shake out.

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xboxhaxorz said:   I preordered the tesla however i am retired and do not pay taxes, i wanted to have somebody else buy the car for me in their name using a personal check in my name to pay for the car, or use my credit card to buy it. Then when they get the tax return, they would give it to me.

I know i cant guarantee that they would give me the return, whether they are family or close friend. I do however want to guarantee that they cant take the car from me since i will be paying for it.

Is this possible?

  
Yes, it's possible.  Anything you said is possible.

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speedracer714 said:   
xboxhaxorz said:   I preordered the tesla however i am retired and do not pay taxes, i wanted to have somebody else buy the car for me in their name using a personal check in my name to pay for the car, or use my credit card to buy it. Then when they get the tax return, they would give it to me.

I know i cant guarantee that they would give me the return, whether they are family or close friend. I do however want to guarantee that they cant take the car from me since i will be paying for it.

Is this possible?

  
Yes, it's possible.  Anything you said is possible.

What steps would you take to accomplish this, then?  Because unless you've thought of some other way, the first step would be to transfer the Tesla reservation to a 3rd party, which they will not do.

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I did get the reservation pretty soon after release, but i obviously dont know my exact reservation number

I dont get how its a tax scam, it is a rebate offered for electric cars in the form of a tax credit or refund

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Lol how is 'can someone else buy it if I pay them and they pay me the tax refund' not a tax scam?

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xboxhaxorz said:   I dont get how its a tax scam, it is a rebate offered for electric cars in the form of a tax credit or refund
 

Yea, a rebate offered to the purchaser as end user. Not to whoever he conspires with. 

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You really have zero tax liability?  Only asking, because a lot of people think they "don't pay taxes" because their withholding or estimated tax payments exceed their tax liability and they get a refund.  The ol' "oh, I don't pay taxes, I get money back every year!"

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xboxhaxorz said:   I did get the reservation pretty soon after release, but i obviously dont know my exact reservation number

I dont get how its a tax scam, it is a rebate offered for electric cars in the form of a tax credit or refund

  You either buy the car and get the tax credit.  Or you have someone else buy the car and get the tax credit, with the understanding they'll let you use the car.   You simply cant have it half each way, where someone else buys it but you magically own it.

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Note that statute defines the term “new qualified plug-in electric drive motor vehicle” to mean a motor vehicle "(A) the original use of which commences with the taxpayer,(B) which is acquired for use or lease by the taxpayer and not for resale," and [factual criteria about weight, motor, etc.]

So, how about: OP purchases the vehicle with his own cash, and immediately resells to Friend, in exchange for a note. Friend then leases the car back to OP, for payments basically equal to amortization (forgiveness) of the note. I think Friend would be entitled to the credit, since original use commences with Friend, and Friend acquired the car for lease-out (to OP).

Among other things, it would be very important that the above lease be a "true lease" for tax purposes, which in turn depends partially on end-of-lease purchase option, etc. The value of the credit to Friend could presumably be baked into the cap rate on the lease. It would also be important that OP not use the vehicle prior to the sale/leaseback. I would also make sure that Friend is an unrelated party, and not a family member.

From a policy perspective, Congress basically authorized the credit on a per vehicle basis, so as long as no more than one credit per new vehicle is being claimed, there is no "scam."

ETA:  The reservation is assignable, IF you can get Tesla to consent.  I don't know track record, but you could explore getting such consent to assign to either Friend or a pass-through business entity.

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You should be able to buy a used Model 3 with 1 mile on it for $7500 less than new once Tesla can keep up with demand. Just wait and buy one used when they don't have a crazy markup.

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psychoslowmatic said:   You should be able to buy a used Model 3 with 1 mile on it for $7500 less than new once Tesla can keep up with demand. Just wait and buy one used when they don't have a crazy markup.
What is your reasoning behind this idea? There's no way anyone will be able to buy a used Model 3 with 1 mile for $7500 less than sticker. Maybe unless it's wrecked. Think about it, there's about 450k reservations for the car. Most of those will not get any tax credit at all. Tesla is close to using up the first 200k $7500 tax credit. After that it goes down to 50% in the first 2 quarters following the limit. Then 25% for the last 2 quarters. My guess is maybe 50k will get some tax credit. The model 3 will be a hot selling car (hopefully they can meet Musk's production goals). There will probably be markup on it in the used car market. Tesla has no competition right now in the $35k 200 mile range with a nationwide fast charging network. Do you think Tesla will lower their prices once the tax credit runs out? They're still losing money on every car they sell. Even Chevy says it loses $9k on every Bolt it sells.

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Sounds like you should get a job so that you have some taxes to pay!

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You realize that with options, the only available models are going to be $50k, right?

I was looking at a Model X a few weeks ago and there was not one single one available within $25k of "base MSRP".

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