Readers Respond: How Would You Pay the Taxes on the HGTV Dream Home? «

Readers Respond: How Would You Pay the Taxes on the HGTV Dream Home?



Sell off Shares of the Home
I noticed that many of the vacation homes in Stowe area were partial ownership homes. I wonder if it would be possible to divide the home into 4 shares and sell off 3 off them? Each share would give you 13 weeks in the home. This would allow the winner the option to use the home for 13 weeks each yea (better than nothing). I would imagine that this would give the winner the opportunity to use the money raised from the sale of the three shares to pay the taxes on the property. This might be a way around having to sell the home.
—Guest Butch
**Tread Carefully**
I inherited real estate that was paid off….BUT I had to pay HUGE amount of money to the government for taxes, plus there are numerous bills to keep it up. I can’t sell because the market is bad and I would have to get enough to pay of the loans that I got to pay the taxes. So now I know the meaning of Asset Rich and Liquid Asset Poor. So if you can’t sell the dream home to pay the government it’s share then I sure home you can find a renter to cover the many expenses like utilities, yearly debris removal for fire hazard, property taxes, etc. etc.
—Guest Get Real People
What an amazing experience
I have more chance of getting struck by lightening than winning this home however, it is fun to dream about. If I did win, I would hire an attorney & accountant 1st off, then sell the home like the other winners have done. There would be some winnings and that would be enough for me – I am very poor due to sickness. Your life would change immediately (stress out the gazoo) and put you in a whirlwind but would also be a lot of fun. For that fact alone, I would like to win. Think of all the people you would meet, the opportunity to vacation in the home (at least for a little while) and the other smaller prizes you would win. Odds are I won’t win but it is fun to dream and have hope……….
—clevelandgirl123
A real look at taxes
With an income tax rate of 35%, fed taxes on $2,560,000 (including the SUV and misc. sundry prize winnings) would run just shy of $900,000. That doesn’t even include state taxes. Capital gains taxes won’t be an issue unless the winner held onto the property long enough to appreciate significantly. If you could possibly mortgage the property for its full value (which you can’t) to pay the taxes, and included the cash on hand, in a best case scenario you may have about 1.6 million remaining in cash. If you earned 6% interest, that would be $8,320 a month to cover the mortgage payment of about $12,000. So, you would have to come up with an additional $3,680 monthly to pay for the note. You could dip into the principal, but then your interest earnings would drop. Then you also have insurance, association fees, annual real estate taxes, utilities, etc. On a house that size and value, you can add another $3,000 monthly out of pocket. So, unless you can manage monthly payments of
—GBailey987
75 and 80
We have 6 children-5 daughter and son-in laws and 7 grandchildren and we are a young 75 & 80–we would share, ski, play and relax together as a family. What a dream!!!!
—Guest Roy N. Mitchell
It’s doable
Wait…Isn’t part of the prize $500,000 in cash? Why not just use that money to pay the taxes and then you don’t have to worry about it. Sell if you want, keep it if you want. Whatever’s left in taxes I’m sure you could get a great loan with that home as collateral. Then treat it like a mortgage.
—Guest Blake
Taxes on HGTV Dream Home
I would live in it as I figured out ways to pay taxes maybe 6 months then if all else fails I would sell it and purchase me a home more easy to financially manage.
—Guest F Nance
If I Won
If I won this house, I would take home some stuff, Sell some stuff at a estate sale,, use some of it to start up a Christian Felloship Church in a building or buy it outright with property. , Buy some hunting/ fishing cabin with lots of property to do such with fishing and hunting equipment., a boat to fish with on the lake with a wharf and a boat. Maybe even a boathouse with a bathroom and changing facilities.
—Guest Karen Mulhern
How About Trying A More Efficient Home
Instead of dollars have it be something the average citizen could afford, but make it totally energy efficient from the ground to completion. Then have people compete with their ideas not just a drawn name.
—USCitizen12thGeneration
Sell it fast
I love it but cannot afford the taxes. Wish HGTV would built more realistic homes: Say in the 500,000 dollar range.
—Guest Jackie
All dreams come to an end.
To think that it is something that you are supposed to win. It seems as though the government always seems to take the fun out of things. Why even build a home for people if they have to sell it because of taxes? Since HGTV creates this dream for people why not have them pay the taxes? I think it is nice for HGVT to do something for regular people, but it still seems as though the home is meant for millionaires. I mean I don’t have over 600,000 dollars to pay for the taxes at the end of the year and I would want to keep a home like that to live in. All in all it seems like something out of reach for any regular person, there has to be some other way for the winner to keep the house and not pay taxes.
—Guest M
c.n.a.
i would sell it quick and buy home for veterans,its 300,000 and gorgous i could feed alot of homeless people with the rest.
—Guest sheri avery
Enigma
How do I know what they would be in the first place? Depending on that figure I’d do anything in my power to enjoy it for awhile at least, and who knows, maybe a bed and breakfast business or something else creative might emerge. I’d have to try something.
—Guest Anita Bowers
make it work
I would do my best to make it work for awhile at least. However, I’ve lived away from my family and home town for most my life, and will eventually retire there. The ever beautiful Marquette, Michigan on Lake Superior. Can you build one there?
—Guest Anita Bowers
pray….
Pray and work about four jobs and if i had to get very well screened upper class people who may want to board with us and live in STYLE!!!!!!!!!!!

 

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