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Have You Thought About Taxes on the HGTV Dream Home?

Posted January 11th, 2008 at 3:53pm by wolflady26
Updated December 30th, 2008 at 8:18am by wolflady26
If you happened to be lucky enough to win the HGTV Dream Home, have you thought about the tax consequences? A general rule of thumb says that state and federal taxes come to about 30% of the value of a sweepstakes win (though that number will vary depending on your individual tax status). However, that means you can expect an increase of somewhere around $700,000!

Most of us couldn't scape up an additional $700,000 easily. However, that doesn't mean the Dream House Giveaway isn't a fantastic win. Find out why, and what most of the previous winners have done to still come out way ahead of the game, in my article Taxes and the HGTV Dream House Giveaway.

So what do you think? Is the fear of paying off those taxes enough to kill your enthusiasm for the Dream Home?
Total Comments 4


luvey's Avatar
Great article! I have been entering for the HGTV Dream Home. If I won, I would take a vacation to Florida, stay there for a few weeks and list it for sale. There is no way could I afford to keep it.
Posted January 13th, 2008 at 10:14pm by luvey luvey is offline
GeekBearingGifts's Avatar
Nope! My plan all along has been to take a vacation there, and put it on the market. If the situation with this year's house allows it (unlike the Texas house) I'd rent it out as a vacation home while it was on the market. There would still be plenty of money left to build my real dream home after the taxes are paid. We can all dream...
Posted January 14th, 2008 at 1:34am by GeekBearingGifts GeekBearingGifts is offline
TamaraDLMerritt's Avatar
Have you thought about how much INSURANCE would cost for a house like that in the Keys?

I would go stay in the home while it was new, and then use it as rental property.

I would also add an elevator because I am disabled and that is how I would have to get in and out. That would also give added tax benefits, and make it more attractive to other folks that had aged or handicapped folks in their family.
Posted January 14th, 2008 at 1:41pm by TamaraDLMerritt TamaraDLMerritt is offline
wolflady26's Avatar
I agree! I'd definitely be happy with the excitement of winning, and with the TONS of money left over after selling the Dream Home and paying the taxes. Not to mention the free vacation stay... I love this sweep!
Posted January 15th, 2008 at 3:27pm by wolflady26 wolflady26 is offline
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