except...that advertising if you had received your purchase agreement back then, would have been the full MSRP and then you would claim the $7,500 credit on your taxes. What you are receiving now should essentially be the same, except you are arguing that you should get a REDUCED MSRP and that everyone who paid the FULL MSRP lost out because we had to pay higher taxes and then claim the $7500 credit. See where paying the tax on the full MSRP puts everyone at the same level?
Nah, I live in a legal world. Unless it's an notable industry standard, I need the legal basis.
GAAP is the notable industry standard for accounting in corporations. Sounds like your concern is now answered.
I'm not claiming anything and that same argument keeps coming up from you -- folks paying full MSRP last year. That isn't my, your, or anyone's problem here. Address that with Lucid. The $7,500 tax credit has nothing to do with my argument for the sales tax Lucid is collecting from some customers. If Lucid reduced the MSRP by $7,500 which is what their splash page on their website says -- "instant $7,500 toward select Lucid Models" they need to collect the taxes on the instant reduced by $7,500 MSRP price not the old price before the instant credit. You mentioned it being a discount and not a sale, yet I'm still waiting for an explanation of the difference between the two when calculating sales tax.
Accounting for sales tax charged on MSRP. Can you post the regulation for me please. Keep in mind, I do this for a living. I have a law degree.
I believe this is why someone in another post weren't to happy with moderator responses. here is a sight that explains GAAP to add to the response provided and I can see how it can be applied. https://www.investopedia.com/terms/g/gaap.asp
Thanks for posting this link. I will take a look at it.
What? I was agreeing with @Babyrocko1908. Sales tax is applied to the post-discounted price, and it sounds like Lucid agreed with her, as that is the GAAP standard. Sounds like that concern is answered.
This is fairly basic accounting...let me try and explain, MSRP as you know,is not a final price of anything...key word..S in MSRP...the price is merely a SUGGESTION. Now, for accounting purposes, LUCID is NOT reducing the MSRP of the car...it is providing you a CREDIT....in our linear minds ...that CREDIT should reduce the MSRP of the car...and anyone would think that...however, the sales tax is NOT actually charged upon the MSRP...it is charged upon the MARKET VALUE of the car itself...market value and MSRP are NOT the same thing ahd tne nuance here though is that for a BRAND new car...the two are VERY close to where the difference is usually zero dollars...so, you are NOT paying sales tax on the MSRP actually...but on the VALUE of the car as it stands in year 2023. Now, how do we know what the value of the car is? The states (And the bank) look at the best representation available of VALUE...which for a new car is usually its MSRP...this is why you pay the tax you do. This is accounting 101 and the key here is recognizing what credit means...a credit reduces your liability of a depreciating asset (A Car).. but does not reduce its MSRP... (My finance professor would be proud)
Its not really a regulation...its a practice that many have cometoagree upon over a loooong time...kinda like how its just done you know...
I think you were/are right @borski...its a non-linear concept so a bit tricky to understand and explain too..
Interesting explanation. Thanks for this.This is fairly basic accounting...let me try and explain, MSRP as you know,is not a final price of anything...key word..S in MSRP...the price is merely a SUGGESTION. Now, for accounting purposes, LUCID is NOT reducing the MSRP of the car...it is providing you a CREDIT....in our linear minds ...that CREDIT should reduce the MSRP of the car...and anyone would think that...however, the sales tax is NOT actually charged upon the MSRP...it is charged upon the MARKET VALUE of the car itself...market value and MSRP are NOT the same thing ahd tne nuance here though is that for a BRAND new car...the two are VERY close to where the difference is usually zero dollars...so, you are NOT paying sales tax on the MSRP actually...but on the VALUE of the car as it stands in year 2023. Now, how do we know what the value of the car is? The states (And the bank) look at the best representation available of VALUE...which for a new car is usually its MSRP...this is why you pay the tax you do. This is accounting 101 and the key here is recognizing what credit means...a credit reduces your liability of a depreciating asset (A Car).. but does not reduce its MSRP... (My finance professor would be proud)
Funny you should say that. I took a few colleagues on drives today and my first thought after the car blew their minds was, I don't have to worry about how much gas I just burned. This car is even changing how I think about just driving around doing nothing!!If I were any of you verified owners, I'd be out driving instead of posting
Nice! This is why I'm getting my chargepoint home charger installed in 2 days while my delivery is out 10 more days... I'm too impatient to charge while I'm awake .. I want to spend that time driving . Haha .Funny you should say that. I took a few colleagues on drives today and my first thought after the car blew their minds was, I don't have to worry about how much gas I just burned. This car is even changing how I think about just driving around doing nothing!!
I'm down to about a 30% charge. I can't wait to hit Electricfy America this weekend to check out plug and charge.
Ah, yes okay, I was incorrect about my previous postings and retract my statements
Would a simpler concept (and not necessarily the most accurate one) be - $7500 credit? In other words, after tax, license, destination, etc, the out the door price is $X. Then Lucid says, we'll credit you $7500, thus the "out the door price" from the consumer point of view is $X - $7500.This is fairly basic accounting...let me try and explain, MSRP as you know,is not a final price of anything...key word..S in MSRP...the price is merely a SUGGESTION. Now, for accounting purposes, LUCID is NOT reducing the MSRP of the car...it is providing you a CREDIT....in our linear minds ...that CREDIT should reduce the MSRP of the car...and anyone would think that...however, the sales tax is NOT actually charged upon the MSRP...it is charged upon the MARKET VALUE of the car itself...market value and MSRP are NOT the same thing ahd tne nuance here though is that for a BRAND new car...the two are VERY close to where the difference is usually zero dollars...so, you are NOT paying sales tax on the MSRP actually...but on the VALUE of the car as it stands in year 2023. Now, how do we know what the value of the car is? The states (And the bank) look at the best representation available of VALUE...which for a new car is usually its MSRP...this is why you pay the tax you do. This is accounting 101 and the key here is recognizing what credit means...a credit reduces your liability of a depreciating asset (A Car).. but does not reduce its MSRP... (My finance professor would be proud)
