hgtv dream home

[Bob Slydell]

PER YEAR????? WHAT????

No, that's income taxes on the winnings. The entire value of the home (if $600K is what they're saying, the home's gotta be valued around $1.5 Mil) is considered income to the winner.

 

[diznygirl]

I don't like this year's home as much - it's beautiful on the outside but if you poke around it looks a little cramped inside considering how many square feet it actually is. But I'll enter and if I win I'll take a few bottles of wine, maybe some furniture, and sell the rest!

 

[Dodie]

My husband and I have the same comment every year...

A ($insert dollar amount here) house and it only has a (smallish) two car garage?!!!!! What's with that? Anyone who can afford a ($insert dollar amount here) house would certainly have more than two cars. Heck - we have four cars and we can certainly NOT afford a ($insert dollar amount here) house!

 

[rhett972]

I read an article last year that did an analysis on last year's dream house and stated that, in order to be able to afford taxes, utilities, insurance, and maintenance, a person would need to have a minimum of $250,000 annual household income. Considering that less than 1% of the population fits into that category... makes you wonder why they do it at all. Isn't it just a little bit cruel to give someone something knowing that they will never be able to keep it?

 

[missypie]

This year the winner also gets $250,000 in cash, so I think I WOULD live there, sell my house here and without a mortgage we wouldn't need high-paying jobs. Maybe I could do something I ENJOY! Wouldn't THAT be nice? I wonder what the taxes are.

I have no idea how much property taxes are in that area, but I computed the annual property taxes in my county and school district for a $1,500,000 home. The tax bill for 2005 would have been $40,650.

 

[Olaf]

Correct me if I'm wrong, but I think the winner got a wad cash last year as well.

Imagine for minute that you win this house, but are unable to sell it? Then what? I guess you could just lower the price down until it does sell, but then that raises the whole valuation/federal taxes issue. Granted, it's an unlikely scenairo, but it's food for thought.

 

[ckmommy]

I guess I will not be entering the dream home give away. I had NO idea how expensive the prize taxes would be, let alone the annual property taxes. It sure is a nice house though!

 

[luvwinnie]

No, that's income taxes on the winnings. The entire value of the home (if $600K is what they're saying, the home's gotta be valued around $1.5 Mil) is considered income to the winner.

Yikes, Now I hope I don't win!

 

[missypie]

Correct me if I'm wrong, but I think the winner got a wad cash last year as well.

Imagine for minute that you win this house, but are unable to sell it? Then what? I guess you could just lower the price down until it does sell, but then that raises the whole valuation/federal taxes issue. Granted, it's an unlikely scenairo, but it's food for thought.

Yes, the winner gets $250,000 cash. So if the federal income tax is $600,000, the winner ONLY needs to come up with $350,000 more by April 15 of the next year....plus $40,000 or so in property taxes...plus whatever it costs to insure a place like that...

I always really wonder how much you can sell a fully furnished home for. I certainly doubt that you can get "full retail value" for it (i.e. what you're paying taxes on.) If someone wanted to live there, they would probably have their own furniture. (I will say, however, that my DH's very weathy aunt and uncle bought a winter home in Scottsdale fully furnished.)

I bet that the winners end up a couple of hundred thousand dollars ahead, which I'd certainly take, but is a far cry from the advertized "two million dollar value."

 

[siouxi31]

County taxes are 12,000 (per a tour guide at the house). Is this the same as property taxes? There's also a HOA that you need to pay yearly for. I believe it was 2500.00. "The estimated winners tax would be $741,308 PLUS 35% of your regular taxable income. That is the Federal Tax, married filing jointly, on the $2,194,450 total prize package represented by this Dream Home." I'm quoting someone from the HGTV boards so I'm not sure how accurate that is. I think I'd take some furniture, those cool washers/dryers that look like dishwashers and sell that baby right away.

 

[Rafiki Rafiki Rafiki]

Did anyone watch the HGTV dream home show today? I was curious how much people would be spending either trying to live in this house or trying to sell it. I found a message board over at HGTV (which I was previously unaware of) and the people posting there said that there are clues in the house to show where next years home location will be. There was mention of apples, ravens, and mirrors...hmm..I'm not sure what to make of that. Do you have any clues what location that may be? Someone had mentioned Bodega Bay, CA because of the birds.

On the HGTV site, it says the 2007 site is Jackson Hole, Wyoming.


I wonder if HGTV has ever considered doing three houses instead of one--maybe worth $300k or $500k rather than this one. They could still use all their decorators and then take on more sponsors. It doesn't make sense to me.

The other problem with this dream home is that it's in a location where you might not be able to find work. I can't imagine trying to find a permanent job where I live now for more than $10/hour.

 

[Tuffcookie]

It's a beautiful home, in a beautiful location! I am surprised that it would have a wine-tasting room and only a 2 car garage. It would be nice, if you won, to be able to spend 1 month in it , before putting it on the market!
One more thing I'd like to see is HGTV kick in for all the taxes so the winner might actually be able to live in the dream home a few years!

TC

 

[Independent]

It's a beautiful home, in a beautiful location! I am surprised that it would have a wine-tasting room and only a 2 car garage. It would be nice, if you won, to be able to spend 1 month in it , before putting it on the market!
One more thing I'd like to see is HGTV kick in for all the taxes so the winner might actually be able to live in the dream home a few years!

TC

The only problem with that is that you would have to pay taxes on the taxes HGTV paid, as it is all considered income that you win from HGTV.

Although, if they picked up the other 700,000 in taxes, you would only have to pay a percentage of that which would probably be a bit more managable. (for a wealthy person )

 

[LK03]

.....ok maybe I won't enter once a day. Who has that kind of money sitting around!? I sure do love the home though, sigh