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Tax savings car trade in For solar roof ?

Tax savings car trade in For solar roof ?

Started to wonder if I could trade in my model S get the solar roof and save the sales tax since Tesla owns solar city now should work ?

drklain | 10 maart 2017

You can ask but very unlikely. Trade-ins are those, trading one thing (a car) in for partial credit towRds a like thing (another car).

church70 | 10 maart 2017

Yeah I was thinking it would be like a credit basically so no tax kind of a unique situation with Tesla

drklain | 10 maart 2017

Not really. Lots of companies make multiple products in different industries. Mitsubishi makes cars and airplanes and generators and ships and, and, and.... Honda makes cars and planes and lawnmowers and generators and motorcycles.

You can't go to those companies and trade in one product for a product in a completely different product line and I wouldn't expect Tesla to do it either. At the end of the day, Tesla isn't in the used-car business. The only reason they take trade-ins (and the values are really low) is as a convenience for a person buying a new car from them.

church70 | 10 maart 2017

Yeah that's a good point

tes-s | 11 maart 2017

And if they did take the car as payment, it would not save any sales tax.

If the solar is $100 and the car is worth $50 and the tax is 5%:

Solar: $100
Tax: $5
Payment: $50 (car) $55 (cash)

Tax does not depend on whether you pay them with goods, services, or cash.

drklain | 11 maart 2017

Not quite. In some states, a trade-in value reduces the sales tax. Basically cost of new car minus value of trade in equals purchase value and that is the number that is taxed instead of the cost of the new car. I believe this is the case in California (but am not sure).

Bill_75D | 11 maart 2017

Arizona reduces the tax by the trade-in amount.

DTsea | 11 maart 2017

Drklain is correct. I only paid salea tax in WA for model S #2 on the difference between price and trade in value, because the sales tax- technically, on a car, a USE tax- was consideded as havi g been paid already on the portion that was embodied in the trade in vehicle.

Kind of funny because Model S #1 was not liable to sales tax at all under the now-expired WA EV incentive!

tes-s | 11 maart 2017

Trading in a car for another car is different than using a car to pay for something else, like a solar roof. No state that I am aware of offers a sales/use tax break for using a car (or other good or service) to pay for something.

drklain | 11 maart 2017

I think it's pretty clear that no one is going to be able to trade in a car for some other product produced by the company.

tes-s | 11 maart 2017

But if the company did, it would not reduce the sales tax.