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

Responses: 428

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taxes

I did forget to mention one thing. I am sure you pay in the state you currently reside in. This is the best part. I live in Wyoming. We do not have a state income tax or a gift tax or a luxury tax. This is so perfect for us. A true life changing event. I can't wait.
—Fisherman60

built for us

My wife and decided 2 years ago that Midway would be perfect for us to retire in. we live in WY only 2 hours from this property. My work schedule would allow us to live there 14 days a month while I am still working, then retire there when we decide to pull the plug on working. This house and location was completley built for us. We have 6 kids with 4 of them out on their own. We love Midway and consider it our second home. The golf courses are great, the fishing is good and the people are warming. Thank you HGTV for making our lives. We were not sure how we would make this move before you provided the means to do it. We toured the home last week and it is perfect.
—Fisherman60

1 Big Family Party then - SELL IT

I've already told my family that we'd be having one heck of a vacation and then on the market it goes!
—Guest Carol

cash option vs. selling

Just curious why the cash option is $800k if the house value is $1.5m. $700k is one heck of a "convenience fee." There was a similar situation last year with the Vermont house. So if you take the house, do you pay tax on the made-up "value" of $1.5m or do you pay it on the proceeds of the sale if you accept and sell it? I would note that there was no such huge disparity with the 2011 Green Home giveaway. They valued the house at $550k but the cash option was $480k. $70k sounds like a reasonable fee to not have to deal with the headache, transfer tax and realtor commissions of accepting and selling the house. By the way, re: state income taxes on the winnings, I believe you would pay them to the state where you are a legal resident for the tax year in question whether you accept the house or not. Only if you accept the house and actually make it your primary residence would you pay tax to Utah. Of course you would still have property taxes, transfer taxes, etc. Good luck!
—vcm1969

Be Realistic...

Unless you are making a substantial salary and living in proximity to the property (or if you could keep your job and work from home), it's not very likely anyone on this board would be able to live out their years in this house. Realistically, you would need to quit your job and find a new job in a different state during this difficult job market. You may be able to slide by for the first few years, but funds would run out QUICK! As for the people who keep saying "We will move in and God will provide the rest!"... if God was paying your taxes now, you wouldn't be entering a sweepstakes in the first place!!! Take the cash option and count your blessings (and all your dough!).
—Guest Takaro

It's a no brainer for me

Living paycheck to paycheck like alot of hardworking americans, I too would not be able to afford this home. It's a beautifully designed house, and is worthy of my most far fetched dreams. Taking the cash would be the only sensible option for my family. I have a wife and two kids, and am providing the only income in our household. with the money left over after federal and state taxes, medicare and social security, the cash would be enough to buy an adequate home, payoff all debts, and put away a college fund for each of my children, all the while living comfortably while still working at my current job. If I were to take the house, I would have to find a job that provided substantial income to pay the property taxes, utilities, and everyday expenses, which i can hardly afford now. Yes, it is definitely a Dream Home, and would be wonderful to live in, but, for me it just isn't feasable.
—Guest that one guy

I'll win this, and live on it

I think, that's why there is $500,000.00 as part of the the winning - to pay for the tax. Smart thinking, HGTV. My 8 year old son thought we will win this. Nice house, nice vehicle, and great extra cash...cant ask for more if I am the lucky one!
—Guest eden

Jade

I would turn it in to "The Family RETREAT". Having a large family, we would all share in paying the taxes and up keep. We'd incorporate it. I think!!!
—Guest Jade LaFlair

Previous army dad

After being in the areas I have been in the army overseas. I would consider it a priviledge and honor to have a beautiful home and car. My two boys would love it. I am working at what I did in the army. I am overseas to save money now. I can pay the taxes.
—Dad2boys

cash option!!

All thought the HG dream home is great, it doesn't serve the functionality that my family demands. I would take the cash option and possibly choose my location, and my dream home under my condition. If I do choose to live at the dream home, it would only be a dream LOL also if you do win you can also sell your current home and have some profit to go towards the dream home in Utah even though that's my last option. I would like to just donate my current house if possible. Happy Winnings!!
—Guest #27

The True Winner Of HGTV 2012

When i win, I would take the tour, all the while knowing i would half to take the cash, because there is no way i would be able to afford this home, thus it is a true dream home, the reality is i don't make enough money to stay or pay for the home yearly! I'm sure that my family would agree to take the cash, buy a home that we could afford and take some of the money and start a business that could help and improve the community. To own a new car that would be the best gift to me, because i have never owned a new car before. First giving my 10% to my heavenly father first!!!!! But just knowing i finally won something in my life time would be the best, as i have played many of games & never won.After reading some of the respones and the tax on the house Vs. the cash option. It would be smare to take the cash option the liability is far less that over a half million in property tax. Good Luck To Everyone! May God Add This Blessing!
—Guest Over Joyed

The True Winner Of HGTV 2012

When i win, I would take the tour, all the while knowing i would half to take the cash, because there is no way i would be able to afford this home, thus it is a true dream home, the reality is i don't make enough money to stay or pay for the home yearly! I'm sure that my family would agree to take the cash, buy a home that we could afford and take some of the money and start a business that could help and improve the community. To own a new car that would be the best gift to me, because i have never owned a new car before. First giving my 10% to my heavenly father first!!!!! But just knowing i finally won something in my life time would be the best, as i have played many of games & never won.After reading some of the respones and the tax on the house Vs. the cash option. It would be smare to take the cash option the liability is far less that over a half million in property tax.
—Guest Over Joyed

Dream maker

My questions is how much is the taxes. Once that's answered, I would start plans make some of my dream at age 61 become reality. Become a pro writer and co-business owner.
—Guest annymaenow

I'd pick the CASH

you get to choose weather or not you want the house or 500,000 + 800,000 cash with the car! that is the way to go. i would help my mother my brother my father our grandparents. i would help my family along with my own life. Hooooah!
—Guest armytank

Dream or nightmare?

So now I know why they call it a dream home. Winning the sweepstakes is the easy part.
—Guest Frances

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How Would You Pay the Taxes on the HGTV Dream Home?

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