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I picked mine up yesterday, and I absolutely love it! I was initially thinking of selling, given the market. But after two days of driving it, I’ve decided to keep it.

We are the lucky few that got a reservation in, enjoy the fact that you’re essentially driving a car that’s worth nearly $300k, but only paid $115k for it!

it’s an awesome truck, enjoy it!
 

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I can’t see selling mine when it comes in the Fall. I described my idea of a perfect vehicle to my wife about 3 months before the Hummer released. It checked EVERY box: Jeep/Truck combo, wide enough for three adults in the back seat, convertible, open truck bed, fuel source other than gasoline, more power than the Raptor I had.
 

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I can’t see selling mine when it comes in the Fall. I described my idea of a perfect vehicle to my wife about 3 months before the Hummer released. It checked EVERY box: Jeep/Truck combo, wide enough for three adults in the back, convertible, open truck bed, fuel source other than gasoline, more power than the Raptor I had.
I’m in the exact same boat. It’s checked every box on my ‘want’ list too! I don’t think I’ll be selling my EV3X anytime soon when it eventually comes in.
 

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I can’t see selling mine when it comes in the Fall. I described my idea of a perfect vehicle to my wife about 3 months before the Hummer released. It checked EVERY box: Jeep/Truck combo, wide enough for three adults in the back, convertible, open truck bed, fuel source other than gasoline, more power than the Raptor I had.
Agreed, it checks all the boxes for me too. I don’t haul much I’m not concerned with towing. I quit buying sports cars a couple years ago because between all my traveling for work and storing it for the winter I just couldn’t justify spending the money on them any more for as little as they got driven. Had a Jeep that was great but just too small and not enough power, then had the TRX but not as fun without an open air experience. The Hummer just does it all.
 

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I am the same as everyone else here on this... It checks all of the boxes for me (still waiting for my name to be called for my EV3X)... I will tow my wakeboard boat, but currently that is about a 3 mile round trip each weekend to the gas station and back to the boat ramp... And occasionally to the dealer but that is less than a 30 mile round trip... So a 15 mile tow and then later the same to bring it back home... And I will probably keep my '05 Silverado 2500 Duramax for any real work type stuff... I just need to figure out where to keep it that's not in the way... The only thing that I am concerned about with the Hummer it it's width and parking and getting in and out... The 4 wheel steering should make parking easier, but all the places that we go seem to have very narrow parking spots.. And getting in and out of the doors could be a problem...
 

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…And getting in and out of the doors could be a problem...
I don’t think you will have a problem with this. Much like the Raptor, the Hummer doesn’t appear to be any wider than a regular truck in the cab portion, so the doors shouldn’t take any more space to open than a “normal” full size truck. The Raptor, and I think the Hummer both get wider in the fender areas.
 

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I don’t think you will have a problem with this. Much like the Raptor, the Hummer doesn’t appear to be any wider than a regular truck in the cab portion, so the doors shouldn’t take any more space to open than a “normal” full size truck. The Raptor, and I think the Hummer both get wider in the fender areas.
The TRX is the same way with the fenders being wider but anything that big will still be tough to park in narrow spots. I’ll be parking mine as far away from other cars as possible wherever I go!
 

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The TRX is the same way with the fenders being wider but anything that big will still be tough to park in narrow spots. I’ll be parking mine as far away from other cars as possible wherever I go!
All of those trucks need a Summon function (to back out of tight parking spots), come on Hyundai has it in the Ioniq 5, GM should have it too..
 

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Well.. you could sell it.. take the $140k and invest it and reserve a new one and by the time it gets to you in 2 years you'll likely have turned that 140k into 160k in mutual funds and could buy your next with the lotto winnings plus have money left over for whatever other toy you want.. Black series camper?! Matches up well..

I sold my FE Bronco and made $35k off it.. its hard not to sell my gen3 Raptor and make $30k+ off that too. If I had my Hummer I'd sell it.. if I had my Rivian.. I'd probs keep the Rivian but those aren't selling for the same premium..

I say sell it. Take your winnings. It's just a car.
 

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Well.. you could sell it.. take the $140k and invest it and reserve a new one and by the time it gets to you in 2 years you'll likely have turned that 140k into 160k in mutual funds and could buy your next with the lotto winnings plus have money left over for whatever other toy you want.. Black series camper?! Matches up well..

I sold my FE Bronco and made $35k off it.. its hard not to sell my gen3 Raptor and make $30k+ off that too. If I had my Hummer I'd sell it.. if I had my Rivian.. I'd probs keep the Rivian but those aren't selling for the same premium..

I say sell it. Take your winnings. It's just a car.
Aren't taxes due on the short term capital gain? That turns your $140k gain into ~$80k pretty quick. Still good, but I don't see a way to avoid the taxes.
 

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Aren't taxes due on the short term capital gain? That turns your $140k gain into ~$80k pretty quick. Still good, but I don't see a way to avoid the taxes.
Short term capital gains is your effective tax rate.. its not going to be 40+%. For the average here I'd imagine 20%-25% or less. But there are a couple of things here I'm not putting emphasis on:

1. The amount of people actually reporting capital gains from a vehicle that they sold or realizing any asset (within reason) is pretty much covered under the capital gains tax.

2. Let's face it, I bet most of the early adopters of this vehicle bought it for their business. There isn't going to be an capital gains tax and they can make their individual situation look however they want it to for the year they took this $140k profit

I probably got way more into the weeds than I needed to on this.. but tldr; is even if they paid taxes.. maybe 30k that'll shell out of the $140k? Maybe? Or $0 since it's a commercial vehicle that can be purchased as such.
 

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Short term capital gains is your effective tax rate.. its not going to be 40+%. For the average here I'd imagine 20%-25% or less. But there are a couple of things here I'm not putting emphasis on:

1. The amount of people actually reporting capital gains from a vehicle that they sold or realizing any asset (within reason) is pretty much covered under the capital gains tax.

2. Let's face it, I bet most of the early adopters of this vehicle bought it for their business. There isn't going to be an capital gains tax and they can make their individual situation look however they want it to for the year they took this $140k profit

I probably got way more into the weeds than I needed to on this.. but tldr; is even if they paid taxes.. maybe 30k that'll shell out of the $140k? Maybe? Or $0 since it's a commercial vehicle that can be purchased as such.
Mostly wrong... If Hummer is purchased as a business vehicle (reservation and purchase in Business Name) section 179 does not apply, because Hummer does not meet the guidelines on layout or bed size. If any business depreciation is taken that the lowers the effective cost and thereby raises your taxable income on the transaction.

Gains made from selling the HummerEv are taxed at your personal tax rate, but remember the income from Hummer is taxed above your ordinary income, likely moving you up a bracket, which can effect other lines such as alternative minimum tax or earned tax credit. (consult your tax advisor)
 

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Guess I assumed most people buying a $100k+ vehicle will have that incremental income taxed at 37% plus whatever state tax (in my case around 5%). Also sucks that I have an 8% sales tax to pay at purchase.

I'd assume there are quite a few people people that have flipped vehicles that didn't report the gain. Not worth the risk to me.

I'm not sure there would be a difference if it was bought through a business. It's a gain on the sale of an asset regardless, so unless they have a loss to offset, taxes are due. You can't like kind exchange vehicles and considering it a gain from inventory for sale to offset expenses is a real stretch unless you have a dealers license.

I'm not a tax expert and might be missing something regarding the business angle. As they say, always consult your tax advisor.
 

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Mostly wrong... If Hummer is purchased as a business vehicle (reservation and purchase in Business Name) section 179 does not apply, because Hummer does not meet the guidelines on layout or bed size. If any business depreciation is taken that the lowers the effective cost and thereby raises your taxable income on the transaction.

Gains made from selling the HummerEv are taxed at your personal tax rate, but remember the income from Hummer is taxed above your ordinary income, likely moving you up a bracket, which can effect other lines such as alternative minimum tax or earned tax credit. (consult your tax advisor)
Section 179 is depreciation used mainly to write off up to the annual allowed deduction as a one time piece of equipment. (Of course a vehicle can be used as equipment). But you do not need to claim section 179 to realize depreciation.

That's a completely and 100% separate item all together from where I was going with it though.

If the truck cost $115k thats an expense for the business. I could do any number of things to rob Peter and pay Paul including taking a larger distribution than necessary to lose money up to the profit of the vehicle. Then I can put whatever my max contribution is of that distribution into a tax deferred account, think self directed 401k/IRA/HSA/504 plan.

This is just one way of what I could think of many to not pay taxes through the business or off the extra distribution. You could even do it without distribution if you wanted to take the profit and buy another piece of equipment to then take the depreciation on. There are endless ways to tax evade here.. nothing I said was even partly wrong.

And since most executives that make over $500k a year have the option to do options/Roths et al as ways of gaining income or sheltering taxes I would never be worried about higher income earners (thinking above $300k-$500k annually) going up a bracket due to this purchase.

Ultimately my impression is that the majority of people buying this truck have household incomes of less than $130,000 per year, especially since the financing word gets brought up so often.
 

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Guess I assumed most people buying a $100k+ vehicle will have that incremental income taxed at 37% plus whatever state tax (in my case around 5%). Also sucks that I have an 8% sales tax to pay at purchase.

I'd assume there are quite a few people people that have flipped vehicles that didn't report the gain. Not worth the risk to me.

I'm not sure there would be a difference if it was bought through a business. It's a gain on the sale of an asset regardless, so unless they have a loss to offset, taxes are due. You can't like kind exchange vehicles and considering it a gain from inventory for sale to offset expenses is a real stretch unless you have a dealers license.

I'm not a tax expert and might be missing something regarding the business angle. As they say, always consult your tax advisor.
You brought up another GREAT example of the trump tax cut of 2018 that absolutely you could do to offset this purchase. Increase inventory! Liquor stores are the big pandemic winner in part due to that they can artificially increase and lower inventory at their volition to show as little or as much income as they want.

Most big liquor stores are cash cows.. they sit on $500M to $2MM of cash and buy inventory or let it rest ever since 2018 where they got to take a huge 1 time depreciation of their entire book. It's been fantastic to watch in the m&a world.
 
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