Don't Mess With Taxes

President Donald Trump and Elon Musk in what might be their last amiable meeting on May 30, 2025, in the Oval Office. Trump lauded the departing Department of Government Efficiency (DOGE) adviser’s efforts. (Official White House Photo by Molly Riley via Wikimedia)

Donald J. Trump and his former billionaire buddy Elon Musk are not sniping at each other online today. But while the political and fiscal feud that rapidly devolved into personal attacks isn’t so public (for now), word is that they’re still on the outs.

In fact, like many of us after a breakup, Trump apparently wants to get rid of anything that reminds him of his ex-BFF. Specifically, Trump reportedly wasn’t to dispose of the red Model S Tesla he bought in March.

The vehicle was one of five that Trump and Musk posed with at the White House in their more affable days. Back then, the electric vehicles were a backdrop as the duo denounced vandalism of Tesla facilities.

Now, however, the ruptured relationship reportedly has Trump considering selling or giving away his Tesla. Its list price on the Tesla website at the time was $73,490. Current valuations of 2025 models have it at $81,630 to $96,630.

Selling the electric vehicle seems more Trump’s style. Insert your used car salesman jokes here.

But if 47 does want to give it away, he might consider donating it to a nonprofit that could use it to achieve its charitable goals. One of those goals might be collecting additional money by raffling off the EV.

Car raffling off the gift: Raffles are a popular way for charitable organizations to raise money. Usually, the prizes are gift cards, themed gift baskets, and event tickets.

But a presidentially pre-owned auto as the main prize would take the raffle to a whole other level, likely sparking more than usual ticket sales.

It also would get the nonprofit, and its prior owner, a lot of attention. One thing we know for sure about Trump is that he loves being at the center of, well, every- and anything.

The publicity during the raffle period would keep Trump in the news. He could post about it on social media. Heck, he even could invite the raffle winner to the White House for a photo op.

Tax warnings for the winner: The raffle winner would be thrilled to get such a high-dollar car for a fraction of its cost.

However, the new lucky owner would not be so happy about the tax implications.

The U.S. Internal Revenue Code considers prizes as taxable income. Whether you win cash, a vacation, or a brand-new car, the value of your prize means the Internal Revenue Service will collect. So will, in most cases, state tax departments.

Yep, this hypothetical Tesla raffle winner would face the same situation as the Oprah Winfrey television show audience members who won conventional cars back in 2024. In the Trump Tesla case, that’s the $70+ grand cited earlier.

When you win any prize, cash or otherwise, you’ll get a 1099-MISC form the next year with the valuation details. You’ll then include that amount on your Form 1040.

When it’s an expensive prize, the amount could push you into a higher tax bracket, at both federal and state levels.

If you can afford to cover the added taxes, winning a car might not be such a tax trauma. Your tax bill, although larger, still will be less than what you would have spent if you’d purchased the vehicle.

And in this proposed Trump Tesla case, you’d have a great story to go with your new auto.

But if you just can’t come up with the tax due, as well as the costs of maintaining the vehicle, you might want to sell it.

As long as your sale doesn’t produce a capital gain, your transaction will be nontaxable and should provide you enough money to cover the tax bill, along with some cash to keep.

Trump’s other Teslas: The Trump-Musk quarrel has made digital Lookie Lous of many of us. I confess to being one. I’m also enjoying the coincidental involvement of an auto, since the Lookie Lou term often is invoked when car crashes are involved.

The fate of Trump’s Model S also got me thinking about his other Teslas.

During the makeshift Tesla White House auto showroom event last March, Trump revealed that he also bought a Cybertruck. He said he gave that vehicle to his eldest granddaughter Kai, Donald Jr.’s daughter, who shares gramps’ love of golf.

I’m presuming Trump hasn’t asked the young woman to get rid of her ride.

Then there’s Trump’s tricked out Cybertruck.

Video game streamer Adin Ross met with Trump at his Florida home in early August 2024 during the presidential campaign. Ross not only arrived at Mar-a-Lago in a custom-wrapped Cybertruck (pictured below), which he gave to Trump.

Credit: Adin Ross / X (Twitter)

So far, I haven’t been able to find out where this politically-themed EV is. When the gift was made, questions were raised since it was worth more than the federal campaign finance law maximum $3,300 limit for individual campaign contributions.

Trump’s campaign said it would seek guidance from the Federal Election Commission (FEC) on how to handle the Cybertruck gift, as well as a Rolex watch Ross also gave the candidate at the same meeting. No official final statement on the gifts was issued.

And if that Cybertruck is still in a Trump garage, there’s no word on whether he wants to dump it, too.

You also might find these items of interest:

• Don’t overlook alternative ways to give to charity
• 6 tax and financial tips for new lottery millionaires
• GOP transportation bill calls for federal EV, hybrid fees

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