Docusign tax related received from Lucid

[steveairgt]

Hi,
Has anyone else received an email from Lucid entitled?:

Complete with Docusign: Lucid Motors Owner Referral Program Tax Documents

I've never seen this before. I haven't clicked on the link.
But are the referrals taxable?

Comments?
thanks

 

[Murcie]

I received it too, and completed it, since I was expecting it.
The terms and conditions of the referral program state the following in this page:

Referrer is responsible for all taxes associated with points accrual and redemption. Referrer is responsible for all taxes associated with points accrual and redemption. A W-9 will need to be completed by the Referrer. To the extent permitted by applicable law, if the Referrer does not complete a Form W-9 within 60 days of such request, Lucid reserves the right to rescind referrer’s points.

I'm just curious how they will value the points when reporting it to the IRS. If anyone knows, please chime in, otherwise, we'll end up knowing once we receive our 1099 forms soon.

Also, to answer your question @steveairgt, referrals are taxable based on my experience with credit card referrals, I've always received tax forms for any referrals I made, whether I earned points, miles or cash rewards.

 

[steveairgt]

I just got an email saying when you redeem points, it could be a taxable event.
Each point has a cash value of $.125

 

[E LUCID 8]

If I knew that I would not have spent most of my points. I ended up ordering things that I would not have otherwise purchased rather than lose the points.

 

[hydbob]

If I knew that I would not have spent most of my points. I ended up ordering things that I would not have otherwise purchased rather than lose the points.

Any product or experience redeemed by a Referrer is a final transaction, and such product or experience cannot be returned for a refund or exchanged. Referrer is responsible for all taxes associated with points accrual and redemption. Referrer is responsible for all taxes associated with points accrual and redemption. A W-9 will need to be completed by the Referrer. To the extent permitted by applicable law, if the Referrer does not complete a Form W-9 within 60 days of such request, Lucid reserves the right to rescind referrer’s points.

 

[Bobby]

If I knew that I would not have spent most of my points. I ended up ordering things that I would not have otherwise purchased rather than lose the points.

This information was disclosed initially. Whether you like it or not, Lucid must follow all proper taxation laws and regulations.

 

[borski]

This information was disclosed initially. Whether you like it or not, Lucid must follow all proper taxation laws and regulations.

Yes. Unfortunately this is how referral programs work.

My buddy Jordan scored 1.25M miles from United from their bug bounty program. Then they sent him a $25k 1099. He was miserable because he didn’t want to fly United and they wouldn’t take the miles back

 

[Lucy Pure]

I just got an email saying when you redeem points, it could be a taxable event.
Each point has a cash value of $.125

Just curious, where did you see the point value?

 

[xponents]

He was miserable because he didn’t want to fly United

My parents asked me what was going on when I started hysterically laughing at this...

 

[steveairgt]

Just curious, where did you see the point value?

In an email to me from Lucid, when I questioned the need for a W9.

 

[Andretex]

Ok. So that means I will get about a $2,700 1099, of which I will owe about $1,000 in taxes. Crapper!

So the factory or HQ tour will cost about $2,300 of taxes for me. (50,000 pts X $0.125 = $6,250 of 1099 sent to you or $2,300 in federal income tax.

 

[Neurio]

If I had to guess (hope), they missed a 0 and that the rewards will be taxed at $0.0125 per point (1.25 cents) rather than $0.125 (12.5 cents).

 

[momo3605]

Yea that email is going in the trash

 

[steveairgt]

If I had to guess (hope), they missed a 0 and that the rewards will be taxed at $0.0125 per point (1.25 cents) rather than $0.125 (12.5 cents).

I’ll know for sure once I receive the actual W9.

 

[Andretex]

If I had to guess (hope), they missed a 0 and that the rewards will be taxed at $0.0125 per point (1.25 cents) rather than $0.125 (12.5 cents).

I hope you are correct.

 

[Buffalo Bob]

If I had to guess (hope), they missed a 0 and that the rewards will be taxed at $0.0125 per point (1.25 cents) rather than $0.125 (12.5 cents).

I hope you are correct.

I also hope you are correct, but I doubt it. If you look at the point values on referral store items relative to those same items on the $$$ store, a value of 12.5 cents per point seems about right, and I doubt that the IRS allows Lucid to cut us a break. Between state and federal tax, it does take quite a bit of wind out of the sails. Ugh!