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Gifting Model S and Free Unlimited Supercharging

Gifting Model S and Free Unlimited Supercharging

If I were to gift my model S to a family member, would the free unlimited supercharging stay with the car, or will be it removed once the title changes? I know if I were to sell the car, the FUSC will be gone; this is a 2018 model.I guess we can also look into letting the family member drive the car without changing title, but the insurance issues get complicating. Thanks.

GoldAK47 | January 13, 2020

It will be gone as soon as ownership changes. Title doesnt even have to change. Mine is unchanged, and not registered for example.

GoldAK47 | January 13, 2020

I think the main thing is do not "change ownership" on tesla site.

chungylau | January 13, 2020

I think I can transfer title without changing ownership, as far as Tesla is concerned, by keeping that car in my Tesla account. Then I can let the other person log into my Tesla account and install the app, etc. Looks like Tesla does not know if the title/ownership has changed. Correct?

PrescottRichard | January 13, 2020

Are you really asking how to defraud Tesla on their own forum?

Nice...

sentabo | January 13, 2020

PrescottRichard, you took the words right out of my mouth.

jordanrichard | January 13, 2020

Some mis-information here. Tesla cut off FUSC on cars that they resell.

Mathew98 | January 13, 2020

Check with your local DMV.

In NYS, the owner does not have to be the registered operator of the vehicle. In fact, the owner doesn't even need to have a valid driver's license.

Ask me how I know this rule...

Bighorn | January 13, 2020

@jordan
Nobody can sell a 2018 with FUSC following on.

chungylau | January 13, 2020

"Are you really asking how to defraud Tesla on their own forum?"

Which step is illegal, and constitutes defrauding?

sentabo | January 13, 2020

"chungylau | January 13, 2020

Are you really asking how to defraud Tesla on their own forum?

Which step is illegal, and constitutes defrauding?"

I suppose there might be a gray area since it is staying in the family. But if you transfer title you are changing ownership. It sounds like you are ready to jump through hoops to do whatever it takes to hide the title transfer from Tesla. Doesn't that appear like you're defrauding them?

chungylau | January 13, 2020

Why do you think I'm defrauding them? You yourself said it might be a grey area, so you don't know if this is illegal. I register on this forum using my Tesla account. Would I defraud them knowing that these posts are traceable back to me?

What hoops am I jumping through? I'm exploring ways to keep FUSC. Does Tesla ever require a different account be used after transfer? In particular, if the transfer is within the family?

Mathew98 | January 14, 2020

Relax dude. Read my post above and inquire with your DMV without transferring your title.

PrescottRichard | January 14, 2020

Are you trying to convey a benefit that you are entitled to have but you are not entitled to convey? You’re trying to ‘keep’ FUSC? Keep the car. Trying to keep FUSC while not keeping the car is like me collecting on my dead wife’s Social Security checks.

IF the agreement you have with Tesla when you bought the car is that the FUSC is transferable then you have nothing to worry about, it will transfer. IF it is NOT transferable then you are trying to transfer a benefit that you are not entitled to transfer. Doing so benefits your family member and is to the detriment (minor, but still) to Tesla.

From your first post it is obvious to me you know the answer already to your question. Keep it in your name and ‘lend’ your car to your family member. Transfer it and lose the FUSC (most likely as you expect). Give the new owner $2k of your own money for a several years worth of charging. Let that person charge at your house (my parents do this for me, mom loves that solar panels on her house power my car).

Mathew98 | January 14, 2020

People need to all chill. OP is not out to make a few bucks. He is gifting it to his family.

What is the net difference between lending his car or transferring the title out right? He is not taking anything away from Tesla that he is not entitled to.

This is exactly how red tape stalls the government so often.

chungylau | January 14, 2020

I'm perfectly relaxed, but when someone claims I am defrauding Tesla, I can't let it slide....:)

I am asking some legitimate questions here. When I sell the car, I understand that Tesla may remove the FUSC feature. In the case of transfer titles within my family, what is the rule? In California, DMV considers selling and gifting to be different, since gifting does not trigger sales tax. Is it illegal to keep that car in my Tesla account after title transfer?

I understand that I can just let the family member drive the car without transferring titles, but I would not want to keep it under my insurance. I think I can keep the title, and have it be insured by someone else, but it gets a bit complicated. And no, that is not fraud either.

I was planning to ask Tesla directly, but just thought people here may have good answers already.

Mathew98 | January 14, 2020

Check with your DMV. You may be able to keep the title and legally have another person become the registered operator and get insurance under his name. It's a lot less headache for everyone involved.

PrescottRichard | January 14, 2020

I can understand why you’d ask here first, getting a reply from Tesla will take a while. HOWEVER, that’s the best way to do it- ask from your account page.

Understand that this question (not gift specific, but FUSC related) has been asked enough times for this to set off an alarm in my head. It is this sentence that set off that alarm ‘ I guess we can also look into letting the family member drive the car without changing title, but the insurance issues get complicating. Thanks.’ That right there looks to ME like you’re trying to transfer the FUSC to your family member when you know that isn’t how it works.

Just transfer the car and see what happens. I *doubt* (but don’t know) that Tesla would differentiate between a gift or sale when it comes to their policy. That is, a transfer is a transfer. So if your FUSC isn’t transferable it isn’t transferable.

I have a question for you- gifting a 2018 Model S is a very nice thing to do, but is there a pretty good tax burden that goes with that? Does the gift-ee have to treat that as income past the $28k or whatever is allowable? I’m guessing you are more versed in this than I am and I only bring it up because I can see where a generous gift like this can backfire. This hasn’t happened to me but I’ve heard about it so that’s why I mention it.

Surely someone here who lives in CA has done this and can give you the real info.

chungylau | January 14, 2020

"I guess we can also look into letting the family member drive the car without changing title, but the insurance issues get complicating. "

Why does this set off any alarm? And no, I don't know whether FUSC is transferable if if is a gift that stays within the family, hence my questions. Insurance can be complicated since I will be carrying two more people in my policy. Of course, they can be putting that vehicle in their own policy, but I am not clear whether I still have any liability.

There is no tax situation that I am aware with. I plan to transfer later this year. Gifting will be to my son and daughter-in-law.

Bighorn | January 14, 2020

@Richard
Gift taxes are rarely paid since you can put it toward your estate tax allowance which is over $20M per couple. Filing a 709 and keeping track of it until death is the biggest hassle.

Bighorn | January 14, 2020

If the car is in one name, anything beyond $15k in value gifted would need to be claimed as an attachment to the year’s 1040. $30k if it is a joint gift which I imagine requires title co-ownership.

PrescottRichard | January 14, 2020

Thanks BH, so it’s not gonna be a burden when done ‘right’ so-to-speak. See, the number is 15K now and I thought it was 14.

chungylau- don’t sweat it, that’s how it reads to me. I’m sure your son & daughter-in-law will be thrilled with or without FUSC. I know I would. If I knew you better I would make a joke about marrying into your family :)

FWIW- my experience with asking questions to Tesla through my car’s web page is that I did get replies, but not as quickly as I thought I should. So if you ask this question through your page it may take over a week but I would bet they get back to you. In theory their response will be the correct one vs what someone here posts with their experience. Keep in mind that the way it worked two years ago for someone with a 2014 S (just an example) may not be how it works now for your car.

chungylau | January 14, 2020

The car belongs to a trust in our names. Each of us can give $15K to a family member. So there is up to $60K that is allowed under the annual exclusion, if there are two recipients..

chungylau | January 14, 2020

The car belongs to a trust in our names. Each of us can give $15K to a family member. So there is up to $60K that is allowed under the annual exclusion, if there are two recipients..

PrescottRichard | January 14, 2020

Looks like you’re aware of all the potential implications. I didn’t mean to get to personal.

chungylau | January 14, 2020

Anything that goes above the $15K per person is still tax free. You just have to keep track of it, since it counts towards the $11.8 Million lifetime exemption.

Bighorn | January 14, 2020

Explained that above. Agree with the $60k if you are giving it to multiple family members.

akikiki | January 14, 2020

chungylau, you might want to go over to TMC and create an account. There people can send you personal messages called conversations so people can provide a little more detail in replies. This way you don't have to give out an email address.

akikiki | January 14, 2020

TMC = teslamotorsclub.com
If you do, let us know here that you did.

2015P90DI | January 15, 2020

I say, if it's staying in the family, it's not defrauding Tesla.

I haven't read all of the replies above. But simply put, as I think other's have suggested, and you did as well, if you don't need your Tesla account anymore, then just let the new owner use it.

For a while, Tesla would not allow you to update your e-mail address without contacting them and having them do it for you, but they've reversed course on that. You can now go into your account and simply change the e-mail address, name, address, password, etc.

Tesla will then recognize the new owner if it goes in for service but will never record as an ownership change.

When I sold my Model 3, to a non-related owner, I had that car put in a separate e-mail account since the 3 was controlled by the phone and I didn't want it on the same account as my other Tesla's. So it had its own account and e-mail. Knowing how slow Tesla is at getting to ownership transfers and because the Model 3 is so reliant on having an active account so you can use your phone, I just handed the account over the the new owner. We changed all of the info and as far as Tesla is concerned, he's the owner of record. Did I "defraud" Tesla but taking the simplest path to getting the owner app access to his new car, rather than wait 90 days for Tesla's horrible customer service in this respect? No. With the Model 3, there's no transfer of benefits and if Tesla was better at customer service and completed these transfers in an acceptable timely manner, then would have gone through they ownership change process. Instead, saved the new owner the hassle. First time Tesla owner now did not have to suffer through the agony many new Pre-Owned owners have and resulted in the bad first impression of Tesla to them. So, they have a new HAPPY customer and all records are in order.

Took Tesla's needless complexity out of the equation, everyone's happy and it was a simple 3 minute process to do so!