[tonipepperoni77]

 

[EaglesPDX]

Sad? Pretty good they have such high resale though it's more "being first on block" kind of value vs. used car value.

 

[ERivTruck]

Person from the "day trader" camp.

 

[RITVT]

I would be a helluva lot sadder if they were selling for R1T's $40K and the market was flooded with LE's... So. Not sad at all actually.

 

[Cactus]

I think what tonipepperoni77 means is that it's sad someone got a launch edition R1T who doesn't really want/need it.

 

[tonipepperoni77]

I think what tonipepperoni77 means is that it's sad someone got a launch edition R1T who doesn't really want/need it.

exactly as well as them claiming a tax credit which is why they need to set limits on the tax credit that you need to own the vehicle for a year to be able to claim it. I just hope no one buys it otherwise things like this will continue

 

[SANZCO2]

exactly as well as them claiming a tax credit which is why they need to set limits on the tax credit that you need to own the vehicle for a year to be able to claim it. I just hope no one buys it otherwise things like this will continue

Claiming the tax credit could be an issue, there is rule about it being purchased for use and not resale. They will also need to claim the short term capital gains from the sale. Between federal and California that could be close to 20k on the 60k profit, maybe more depending on the tax bracket. Would they get caught on either of these probably not but is it worth the gamble?

Even doing it legally, they still could net 40k on that sale, certainly a motivator for many people.

For me, I would rather have the Rivian.

 

[kizamybute']

This one is actually pretty cheap. Seen several listed at $150K+

 

[EaglesPDX]

they need to set limits on the tax credit that you need to own the vehicle for a year to be able to claim it.

That is the IRS rule but low priority on enforcing it. More money in Muskovites.

 

[O. horridus]

That is the IRS rule but low priority on enforcing it. More money in Muskovites.

Except Congress gutted IRS funding for tracking down that money:

IRS unit gets no funds to enforce sanctions on rich Russians

The White House request to give the IRS $30 million for tracing financial activities associated with sanctioned people appeared to run afoul of broader reluctance by Republicans to put more money into IRS enforcement actions.

www.federaltimes.com

 

[TT97]

Claiming the tax credit could be an issue, there is rule about it being purchased for use and not resale. They will also need to claim the short term capital gains from the sale. Between federal and California that could be close to 20k on the 60k profit, maybe more depending on the tax bracket. Would they get caught on either of these probably not but is it worth the gamble?

Even doing it legally, they still could net 40k on that sale, certainly a motivator for many people.

For me, I would rather have the Rivian.

Buying and flipping the next day is different than resale. You need a reseller license for it to be a resale (but you are not subject to sales tax when purchasing the vehicle as a reseller). Federal government doesn't care who collects the credit as the point of the credit is to get more EVs in the market. The State is happy with the flip as they get sales tax income twice.

California does have a 30-month ownership/lease requirement for their credits.

 

[SANZCO2]

Buying and flipping the next day is different than resale. You need a reseller license for it to be a resale (but you are not subject to sales tax when purchasing the vehicle as a reseller). Federal government doesn't care who collects the credit as the point of the credit is to get more EVs in the market. The State is happy with the flip as they get sales tax income twice.

California does have a 30-month ownership/lease requirement for their credits.

In a tax audit point 6 could be critical. As I stated odds of being called on it is slim but this activity is clearly not in line with the spirit of this tax credit.

 

[Victerry]

A Launch green just like this one recently (a week ago) sold for $138,000 on Cars & Bids. Had 100 or so miles on it.

 

[sciencegeek]

The Rise of Brand-New Secondhand EVs

The global chip shortage has triggered a surge in demand for prized, pricey used electric vehicles. It's only just beginning.

www.wired.com

 

[TessP100D]

That is the IRS rule but low priority on enforcing it. More money in Muskovites.

What does that mean? Tesla basher?

 

[EaglesPDX]

What does that mean?

That finding EV'ers who sold their EV's shortly after purchasing them in order to claw back the $7,500 in EV tax credit is high cost and low return for IRS. Way more money in looking at someone like Musk who become the world's richest man after getting $10B in taxpayer breaks and subsidies but paid no income tax for the previous 10 years.

 

[EVBob]

At least he bought it and took delivery. I'd prefer to see that than people trying, against contractual obligations, to sell their place in line and profit without actually taking delivery. This is being likened to "day trading" only with day trading, people are actually taking financial risk and buying the securities before selling them at a profit. Plus, while not my thing, it's legal. However, what is being discussed in this thread is not new behavior and is it any different than dealers placing huge markups on "in demand" vehicles?

The bigger picture perspective is that it was sold and delivered by Rivian which is good for Rivian as a company, it's stock and the Rivian community. Bashing people for trying to profit is pointless and of no value. It won't stop the behavior and this will not go on forever. It comes across as sour grapes. At the end of the day, it's a truck. Don't get me wrong, I can't wait to get mine and have no intention of flipping it when I finally get it. In my opinion, it's a waste of both time and energy to get emotional about it.