MJones

Don'f think you'll be getting a 1099......don't worry about it

MarcusG

Damn. Damn damn. And double Damn. I feel for you guys.

I'm just going to continue to drive my C2S until the end of this year and do my best to pick up a CPO low mileage car with a new motor in it that someone was afraid to drive and traded it in on a Macan for their wife and went down the street to write a check for a 650 S.

Nick

Well, if not a 1099 the issue remains. Is the compensation taxable?

silverrules

The accountant will know. Email him/her now or wait until next yr Frankly I don't want to know anytime soon. I just hope PAG sends us a check eventually. You never know with the guys in Germany.

Clocked

For all that are interested, My friend at Porsche just send the following and as you can tell it is written thus we have evidence:


Hi xxxxxxx,

You will not be sent a 1099 form, since it is compensation it does not have
to be taxed. I hope you had a great weekend and will enjoy your upcoming
holiday as well.

Thank you,

Kindest regards,

Ian Moon
GT3 Customer Concierge
Porsche Cars North America, Inc.
980 Hammond Drive, Suite 1000
Atlanta, GA 30328

Maverick787

Actuall his email is not correct by listing it as compensation. That definition defines a pay for service relationship which denotes taxes due unless Porsche coverers the taxes. Thus by listing as a damage award of customer service "goodwill" no taxes have to be rendered. Porsche will file it as an expense thus a write off for them.

BMW delivered a car to me late, and no taxes were due to the state because it was for damages which are none taxable in all 50 states. The guy on phone does not know the tax code. I think all will be fine, and the key is Porsche not sending a 1099 to the US.

Mike in CA

I believe Maverick is correct. I recently had an issue with Porsche that was resolved with a cash payment. I can't recall the exact language on the check stub but it implied that IRS reporting was not required. More to the point, in the accompanying letter it was specifically stated that the payment was "goodwill" not compensation. I was told there would be no tax implications and I expect the same with our "compensation".

Maverick787

It's appropriate to show the compensation as "goodwill" because the sale was booked possibly in 2013, and for GAAP you can't go and adjust sales that are booked or accrued in a different month. The legal approach is to pay "goodwill" which should hit operating cost vs. the sales booked revenue.

If refunded that's another nasty game because now you get into depreciation, and applying the new tax cost structure. Enjoy the " the goodwill" most important your bad *** cars!

Clocked

I was only passing along what the response was. Reality will be when one of us gets a check back from PNA and posts what the check or letter says. No reason to speculate at this point.

Nick

It was confirmed to me today by PCNA that they would not reduce the price of the car, would not file a 1099 and the compensation/ goodwill is not taxable.

0Q991

Thanks, Nick.