Docusign tax related received from Lucid

[onyxjade]

I just received the 1099 from Lucid for a referral I did. Total amount reported was $739. I received a car cover, a sweatshirt, and 2 mugs. I'll definitely never refer another car again, with state and federal taxes, the total amount could work out to be as high as $350. Can't imagine spending that much on those 4 items.

 

[Amster]

I just saw mine today. I got all kinds of stuff last year. Sun shades, trunk and frunk well mats, a charger, bowls, a bottle. $1800 of stuff. I'll be a lot more careful about spending the rest of my points, if I spend them at all.

 

[Buffalo Bob]

I'm glad I didn't spring for the 20,000 point signed car sketch. It looks nice, but from what I can see, it's not nice enough for me to justify getting a $2,500 (+ sales tax) 1099. (Perhaps if each one is an original drawing, but I don't think that's the case.)

 

[Andretex]

I'm glad I didn't spring for the 20,000 point signed car sketch. It looks nice, but from what I can see, it's not nice enough for me to justify getting a $2,500 (+ sales tax) 1099. (Perhaps if each one is an original drawing, but I don't think that's the case.)

Agreed. Me too. Glad I did not get that item. But I got a 1099 for about $2,700. Ouch.

 

[Buffalo Bob]

Agreed. Me too. Glad I did not get that item. But I got a 1099 for about $2,700. Ouch.

I'm sorry to say that I cracked $5k without a trip. What in hell was I thinking?

 

[onyxjade]

Yep, I just checked out online what my items would cost if I got them at Amazon. Car cover is no more than $70, sweatshirt no more than $30-40. Mugs are $10/each. I'll be generous and say the total sum of items received is worth no more than $150-200 on a good day. $739 is insane. I'd rather just take cash than Lucid swag.

Not trying to be a negative nancy here, but just a warning to anyone using the referral program. You'll end up paying for the free stuff you get, the payee will just be the IRS and your state tax agency.

 

[Andretex]

Yeah so the Lucid charger comes out to about $450 in income taxes. The coffee mug is about $12.50 in income taxes. I think Lucid should drop the points required to receive these items. It is a bit high.

 

[Amster]

Yep, I just checked out online what my items would cost if I got them at Amazon. Car cover is no more than $70, sweatshirt no more than $30-40. Mugs are $10/each. I'll be generous and say the total sum of items received is worth no more than $150-200 on a good day. $739 is insane. I'd rather just take cash than Lucid swag.

Not trying to be a negative nancy here, but just a warning to anyone using the referral program. You'll end up paying for the free stuff you get, the payee will just be the IRS and your state tax agency.

Of course they're a lot cheaper, but the mugs or sweatshirts you get on Amazon don't have Lucid logos on them. Whether that's worth it to someone or not is a personal decision. I've known women who will spend $1K on a purse if it has the right logo. I wouldn't, but obviously many do. The only important thing that didn't hit home until getting the 1099s is knowing what the cost really is. I want the factory tour. If that comes back online as an award, I now have the points for it and I'll sign up for it, but I'll know what I'm getting into.

 

[Andretex]

So the 50,000 point tour with airfare and hotel will be about $2,500 in income taxes. If you choose the tour only for 25,000 points, it will cost $1,250 in taxes.

 

[onyxjade]

Of course they're a lot cheaper, but the mugs or sweatshirts you get on Amazon don't have Lucid logos on them. Whether that's worth it to someone or not is a personal decision. I've known women who will spend $1K on a purse if it has the right logo. I wouldn't, but obviously many do. The only important thing that didn't hit home until getting the 1099s is knowing what the cost really is. I want the factory tour. If that comes back online as an award, I now have the points for it and I'll sign up for it, but I'll know what I'm getting into.

Not quite the same analogy. If I had seen the actual cost of getting this "free stuff" I would have declined. I guess I should have read the fine print, my mistake and I need to remind myself that very few things in life are free. Just posting as a warning to anyone considering the referral program that there's a cost and it's probably way higher than some may be willing to pay. Don't make the same mistake I did!

 

[Buffalo Bob]

Also, at the $.125 per point 1099 rate, the 1099 value of many items purchased from the referral store is actually higher than their price on the $$$ store, although the free shipping on the referral store might be a factor. The charger is a notable exception, as it's a little cheaper.

 

[Andretex]

I think it is still worth it. I would buy the car mats, mugs, shirts, etc anyway. We are just getting it a tad bit cheaper when we pay marginal income tax rate on those items. It is important to understand the cost, but I think still well worth it.

If Lucid dropped the points a bit like 25%, it would be even better.

 

[Murcie]

Also, at the $.125 per point 1099 rate, the 1099 value of many items purchased from the referral store is actually higher than their price on the $$$ store, although the free shipping on the referral store might be a factor. The charger is a notable exception, as it's a little cheaper.

Agreed. I did the math and the value of points in the 1099 form is 12% higher than the actual cost of getting the same items from the store. As y’all said, at this rate it’s going to be hard to justify referring people and using the points, unless they drop the points needed to redeem for items or the $0.125/point rate which is also high, I was expecting it to be at $0.100/point.

 

[Blue Lectroid]

This is supposed to be an incentive program and if I were Lucid, I’d be looking for the absolute bare minimum value they can legally justify. Based on other programs, I doubt that is 12.5 cents.

 

[onyxjade]

This is supposed to be an incentive program and if I were Lucid, I’d be looking for the absolute bare minimum value they can legally justify. Based on other programs, I doubt that is 12.5 cents.

Yep, I would have assumed cost would have been appropriate, or cost plus.

 

[borski]

Yeah, I agree.

 

[Bobby]

This is supposed to be an incentive program and if I were Lucid, I’d be looking for the absolute bare minimum value they can legally justify. Based on other programs, I doubt that is 12.5 cents.

Does take the fun out of it a bit.

 

[californiaboy935]

Does take the fun out of it a bit.

Yeah, makes me rethink referring my friends last year. Having the points be valued at .125 really makes it impossible to justify. The reality of taxes is harsh but a little more in the way of generosity (as other have said valuing the points less or charging less for the items) from Lucid would have been nice.

As others have said there is nothing we can do now, but I think Lucid would be better off implementing some changes to make the Refferal program more attractive.

I’m awaiting an email back from my tax advisor but I wonder when the taxable event is triggered in this transaction. When the Refferal points are paid, or when they are redeemed.

I’d argue when paid but it seems like from the comments above they are sending out the 1099-Miscs to reflect only points which were used.

 

[borski]

I'd still take the Sapphire duffel. And, honestly, the tours. They're worth it even if they cost a bit, since you'd never get them otherwise. Plus, I hope they add more things like wheels, etc.

 

[californiaboy935]

I'd still take the Sapphire duffel. And, honestly, the tours. They're worth it even if they cost a bit, since you'd never get them otherwise. Plus, I hope they add more things like wheels, etc.

The tours would be worth it, but with the 8 vehicle Refferal limit how would you achieve the tours? Over years of saving up? I think the limit is kinda silly, I understand it’s good to get full price but a Refferal from a friend who has a lucid is going to be a long term relationship since the person can go to their friend with questions and issues.

That’s kinda like me and my friends @Denali_Dane ;I got him to purchase a Lucid and I’m sure if he had any non-warranted easy problems he would come to me for quick answers.

Even if they find a random code on this forum it still gets them here to the community who loves this car and wants to see it succeed.