[ctbenfield]

I have an RT1 for delivery. How can I sell it without paying sales tax on my purchase and the eventual buyer also paying sales tax,

 

[derekmw]

Move to Oregon? or sell to someone in Oregon (or another state that doesn't have sales tax). lol

 

[CommodoreAmiga]

"How do I break the law?"

Tax evasion is how they got Capone.

 

[ctbenfield]

No I’m not trying to evade anything, I’m never going to drive it. Why would you think paying sales taxes twice in 24 hours is somehow a good thing
Anyway I found the answer, I’m a used car dealer now. $49 bucks on line. And I get to keep my 30k markup.

 

[mkg3]

Have you checked the prices for second hand R1T these days?

Long gone are the days where people paid $30k markup from pre-March 22 prices.

 

[lefkonj]

In NJ we don't pay sales tax on EVs.... not sure about re-selling it though.

 

[Heller]

I sold my F150 to my brother, siblings don't pay sales tax

 

[onthebrake]

No I’m not trying to evade anything, I’m never going to drive it. Why would you think paying sales taxes twice in 24 hours is somehow a good thing
Anyway I found the answer, I’m a used car dealer now. $49 bucks on line. And I get to keep my 30k markup.

Good luck with that.

 

[Rivianation]

Move to Oregon? or sell to someone in Oregon (or another state that doesn't have sales tax). lol

It doesn't work that way. The original seller (unless seller is a car dealer) can't sell a new car to someone, it would be a used car sale. That requires him to register it and pay taxes (if applicable) in his home state. If he doesn't and sells to an Oregon buyer without doing this, that buyer will not have a title in hand to register it, since its brand new straight from the factory. There is no way around it. Also, Rivian won't sell you the car unless you register it in your home state since they do the registration and plate transfer on step whatever, so the thread in moot.

I wonder why OP doesn't just take on all the burden on buying it (taxes, registration, loan, first payment) and just sell it with under 1000 miles? He will make thousands in profit. ... unless of course...his credit is shite.

 

[EaglesPDX]

A possible for me is buying it and reselling it. I take the $7,500 Fed Ex, buyer takes the $4000 used Fed Ex. He gets an $89K vehicle for $75 and covers the costs of the transactions. A nice win win situation. Technically I could get hit on the Fed Ex for reselling so quickly but not likely. Part of the deal would be buyer would have to cover that if it happened. He's still ahead $7,500.

 

[Rivianation]

A possible for me is buying it and reselling it. I take the $7,500 Fed Ex, buyer takes the $4000 used Fed Ex. He gets an $89K vehicle for $75 and covers the costs of the transactions. A nice win win situation. Technically I could get hit on the Fed Ex for reselling so quickly but not likely. Part of the deal would be buyer would have to cover that if it happened. He's still ahead $7,500.

You do NOT get dinged for selling right away. The tax credit is yours for your good deed of bringing an EV into the world. However, the used credit for your buyer worries me. The Fed isn't dumb enough to give out two credits for the same vehicle on two transactions a week apart... are they? I mean they do use computers and all.

 

[CommodoreAmiga]

You do NOT get dinged for selling right away. The tax credit is yours for your good deed of bringing an EV into the world. However, the used credit for your buyer worries me. The Fed isn't dumb enough to give out two credits for the same vehicle on two transactions a week apart... are they? I mean they do use computers and all.

You aren’t supposed to claim the $7,500 credit if you purchased with intent to resell. Having your “fraud” discovered and the resulting audit is the “ding” I think they’re referring to.

 

[EaglesPDX]

Having your “fraud” discovered and the resulting audit is the “ding” I think they’re referring to.

Correct. However, that is proving "intent" and tricky so never enforced.

• Buy it for your own use, not for resale

In looking closer, buyer would not be able to claim the used car credit as it has be less than $25k and two years old. That will make the sale of my 2019 Model 3 LR AWD qualify IF I sell it to a dealer. In which case the top above about becoming a "car dealer" for couple hundred bucks would be worth it for the buyer and myself.

So I'd go for the $7,500 tax credit, he gets $15k off the price of the vehicle.

 

[Rivianation]

You aren’t supposed to claim the $7,500 credit if you purchased with intent to resell. Having your “fraud” discovered and the resulting audit is the “ding” I think they’re referring to.

Wow...the IRS suing you for intent. How does that work, mind reading?
You had a change of heart, you didn't like it, you lost your job, you got sick, you hate the color, my dog won't fit, whatever. The credit is to encourage the adoption of new EVs. You did that. What happens after you buy is irrelevant.

I sold a 4xe months before I filled out the IRS form. Nowhere on the form do they ask if you still own it. They only need purchase date, price paid and VIN.

 

[EaglesPDX]

Wow...the IRS suing you for intent. How does that work, mind reading?

Exactly so I'm not too worried about claiming the $7,500.

 

[Hodog16]

Yeah the resale clause is really hard to enforce, just don't sell it the same day you bought it lol.

 

[SANZCO2]

Yeah the resale clause is really hard to enforce, just don't sell it the same day you bought it lol.

Would not be hard to prove for the OP since they are trying to sell it without registering it.

 

[LJ in Redding]

I have an R1S that can still be reconfigured that I doubt that I will keep. What is the best way to let potential buyers know of its potential availability? The vehicle is currently scheduled to be delivered July to September into Oregon.

 

[EaglesPDX]

I have an R1S that can still be reconfigured that I doubt that I will keep. What is the best way to let potential buyers know of its potential availability? The vehicle is currently scheduled to be delivered July to September into Oregon.

After you buy it, advertise it for sale. It will be $15k less than current price so fair to make a $7500 profit on it. Win win for you and buyer.

 

[John B R1T]

I'm not even gonna look it up, but I'm pretty sure that a "dealer" is not entitled to the credit. You can't have it both ways, and all of the talk of "what if I lost my job?, how would they know?"...that requires that a position be "represented to the IRS". That would be under penalty of perjury, and the fines for lying were $10,000 the last I looked. The OP's posting here could well be "Exhibit A" of "acquiring with intent to sell"...and just so you'll know, that little "dealer's license" could well be putting you in the "trade or business" of selling cars, in which case you'd need to plan on paying self-employment tax on the profit of your little enterprise. Once again, I'm not providing you with any advice here other than to "see your tax preparer" before embarking on any of this.

Are we having fun yet?