logo
g Text Version
Beauty & Self
Books & Music
Career
Computers
Education
Family
Food & Wine
Health & Fitness
Hobbies & Crafts
Home & Garden
Money
News & Politics
Relationships
Religion & Spirituality
Sports
Travel & Culture
TV & Movies

dailyclick
Bored? Games!
Nutrition
Postcards
Take a Quiz
Rate My Photo

new
Action Movies
Bible Basics
Houseplants
Romance Movies
Creativity
Family Travel
Southwest USA


dailyclick
All times in EST

Full Schedule
g
g Taxes Site

BellaOnline's Taxes Editor

g

HGTV Dream House Tax Nightmare

Guest Author - Kate Woods

Is it fact or fiction that if you win the HGTV Dream House that it becomes a tax nightmare? Perhaps itís all an issue of perception and if you want to actually keep it or not. It is an unfortunate fact that if you win a prize it will in all likelihood be taxable by various government taxing agencies. So winning the HGTV Dream House Grand Prize Package is no different. According to the IRS prizes and awards are taxable. They define prizes and awards as amounts received primarily in recognition of religious, charitable, scientific, educational, artistic, literary, or civic achievement or as received as the result of entering a contest. So the grand prize package award from HGTV is unfortunately taxable for federal income taxes. The 2008 grand prize package is said to be worth more than 2.2 million dollars so the federal tax liability on the total package would be over $700,000. Of course there would also be real estate taxes and taxes on the prizes at other government levels.

Most of the previous winners of HGTVís Dream House grand prize packages have sold the houses. At first consideration this seems to be a colossal shame. Consider if you will the ecstasy and excitement associated with winning a spectacular new home only to find that you cannot afford to reside in it. But ask yourself, if you won the lottery and hit for 2.2 million dollars and after you paid all the taxes you could afford to buy a nice new home and a new vehicle and still have money to invest, would you believe that you were having a nightmare or living a dream come true?

I guess like everything in life, itís all a matter of perception. Myself, I think Iíll enter the contest and I wonít wake up screaming in fear if I win Iíll be too busy experiencing the joy of having a dream come true.

Whether you win or lose the HGTV Dream House Package if you do your own taxes Turbo Tax is a usually a good Tax Prep choice - Click Here To Go To Amazon.com

I hope you're enjoying Tax Facts on the Taxing Subject of Taxes!

Any U.S. tax advice contained in this electronic communication was not intended or written to be used, nor can be used, by any recipient of this communication for the purpose of avoiding penalties that might be imposed pursuant to the Internal Revenue Code or U.S. Treasury Regulations, or any other state or local law or regulation.

Content of this site is not intended to replace professional consultation.



This site needs an editor - click to learn more!

Add HGTV+Dream+House+Tax+Nightmare to Twitter Add HGTV+Dream+House+Tax+Nightmare to Facebook Add HGTV+Dream+House+Tax+Nightmare to MySpace Add HGTV+Dream+House+Tax+Nightmare to Del.icio.us Digg HGTV+Dream+House+Tax+Nightmare Add HGTV+Dream+House+Tax+Nightmare to Yahoo My Web Add HGTV+Dream+House+Tax+Nightmare to Google Bookmarks Add HGTV+Dream+House+Tax+Nightmare to Stumbleupon Add HGTV+Dream+House+Tax+Nightmare to Reddit




Subscribe to Bellaonline.com Taxes Newsletter
DogEared Corners - Taxes & Tips Etc. FYI
RSS
Related Articles
Editor's Picks Articles
Top Ten Articles
Previous Features
Site Map


For FREE email updates, subscribe to the Taxes Newsletter


Past Issues


print
Printer Friendly
bookmark
Bookmark
tell friend
Tell a Friend
forum
Forum
email
Email Editor


Content copyright © 2014 by Kate Woods. All rights reserved.
This content was written by Kate Woods. If you wish to use this content in any manner, you need written permission. Contact BellaOnline Administration for details.

g


g features
The Taxing Subject of Taxes

Requesting an Extension of Time To Pay Your Taxes

Why We Pay Income Taxes

Archives | Site Map

forum
Forum
email
Contact

Past Issues
memberscenter


vote
Poetry
Daily
Weekly
Monthly
Less than Monthly



BellaOnline on Facebook
g


| About BellaOnline | Privacy Policy | Advertising | Become an Editor |
Website copyright © 2014 Minerva WebWorks LLC. All rights reserved.


BellaOnline Editor