Diesel Cayenne and VW emission issue
02-03-2017, 03:17 PM
#2926
Addict
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When I was at my local dealer yesterday I was told that all new and unsold CDs currently in dealer inventory around the country will need to be shipped back to Germany where they will be sold in the European market. Has anyone else heard this? I was also told this amounts to 700 to 800 cars. Very sad!
02-03-2017, 03:22 PM
#2927
That is an interesting question, it is my understanding that any payout is for loss of residual value on the vehicle and if that is so I would not think (I'm neither an accountant nor a lawyer) that it would be the same as a diminished value paid as part of an insurance claim after an accident and therefore not taxable. What do the experts say and quite frankly this is all academic as nothing has been finalized that I know of except that my wife and I are still completely happy with our CD, GREAT VEHICLE
02-03-2017, 03:28 PM
#2928
02-03-2017, 03:37 PM
#2929
Rennlist Member
But you can be sure the IRS and local revenue folks will claim its taxable. Of course it's a bigger problem if we end up going the buy-back route, unless you replace the CD in a timely manner with another vehicle so you can claim funds were a like for like transaction (still a bit dicey), but then sales tax gets you ... yep, there will be a tax on this thing somewhere ... so consult your tax professional.
02-03-2017, 04:54 PM
#2930
Rennlist Member
I thought someone (a lawyer, maybe) posted earlier that any "compensation" is taxable and any damages are not taxable.
Everything in the settlement is worded as "compensation", so....
Everything in the settlement is worded as "compensation", so....
02-03-2017, 06:53 PM
#2933
Burning Brakes
Originally Posted by Mark Dreyer
I just asked my SA at the local dealer and he thinks your dealer info is inaccurate. He expects the CD's to be available for sale and I'm on the list to get one.
02-03-2017, 11:35 PM
#2934
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Most likely tax result
I'm a tax lawyer - haven't researched it, but intuitively pretty comfortable that this is the correct answer:
http://www.sfgate.com/business/netwo...nt-8330447.php
http://www.sfgate.com/business/netwo...nt-8330447.php
02-03-2017, 11:40 PM
#2935
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http://www.sfgate.com/business/netwo...nt-8330447.php - I'm a tax lawyer, haven't researched it but intuitively this answer seems correct.
02-03-2017, 11:48 PM
#2937
Rennlist Member
From the above link:
Taxable or not
In general, “any settlement you get for something other than personal physical injury or sickness is taxable,” said Mark Luscombe, principal federal tax analyst for Wolters Kluwer Tax & Accounting. Most other settlements, such as for back pay and punitive damages, are taxable.
In the case of property, if the settlement merely restores your original value, it’s not taxable, but if it enriches you beyond where you were before, it is taxable, he said.
Theoretically, owners who sold their cars back would not owe tax if the combined payment (trade-in plus cash payment) was less than their basis, which is generally what they paid for the car (or the depreciated basis if they used it in a business). If it was more than their basis, they could owe tax on the excess.
If they kept the car and got it fixed, the cash payment likely would not be taxable if the payment is designed to compensate them for lost value.
If they leased the car, the payment could be taxable because “they had no basis” in the car, according to Luscombe.
Taxable or not
In general, “any settlement you get for something other than personal physical injury or sickness is taxable,” said Mark Luscombe, principal federal tax analyst for Wolters Kluwer Tax & Accounting. Most other settlements, such as for back pay and punitive damages, are taxable.
In the case of property, if the settlement merely restores your original value, it’s not taxable, but if it enriches you beyond where you were before, it is taxable, he said.
Theoretically, owners who sold their cars back would not owe tax if the combined payment (trade-in plus cash payment) was less than their basis, which is generally what they paid for the car (or the depreciated basis if they used it in a business). If it was more than their basis, they could owe tax on the excess.
If they kept the car and got it fixed, the cash payment likely would not be taxable if the payment is designed to compensate them for lost value.
If they leased the car, the payment could be taxable because “they had no basis” in the car, according to Luscombe.
02-04-2017, 12:03 AM
#2938
RL Community Team
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It's compensating for lost value. Unless turbo tax has a "Dieselgate payout" question come 2018, I can't see paying...
02-04-2017, 12:36 PM
#2939
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So I have a 2014 Cayenne Diesel. If I read the VW diesel settlement correct, if I trade the car in today am I eligible for $4600 to $7700 compensation or is that only Audi/VW 2009-2012 cars? I ask because I am thinking of trading the car in. Do I need to keep the car to get the $8500 to $17600 and fix the car of course.