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

Responses: 339

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Taxes on a mansion

I would keep the house and live in it,my kids are grown @would love vacationing in VT.I have lived frugally,so any large debt I owe now can be paid,and I can enjoy the winnings for a long time to come.
—Guest pearl

rental

I think the best way to help finance the tax's on the dream home is to build a rental unit above the garage ....totally separate from the house and that would help offset some of the expense. A bed and breakfast would be nice too.
—Guest icandream

I wish...

I would love to have the tough problem of what to do with a 2+ million dollar prize!
—Guest Larry

real estate headache in today's market

2011 dream home now gives you the option of taking "cash" instead of the house. well well that takes care of all the problems with taxes. When you have cash in your hand all you have to do is pay taxes and not worry about mortgages, and property taxes and paying more taxes when you sell it. yep, baby I would take the cash. no brainer there.
—np2ht

C'mon HGTV

You can't rent a lot of these properties out or use them for a buisness because of community regulations. You've either got to pay to live in the house or sell it. In this market selling would probably take a while and you'd be paying quite a bit during this process. My main questions are these: 1. Why wouldn't HGTV include enough money to live in the house for a year to at least consider your options (500K won't cover taxes on the package, we're talkin around 700K to pay off in your first year, so why not include this number in the package?) 2. I get that they want to make really nice, big houses, because that is more interesting and exciting... But why not build them in places where they can be rented out to pay for outrageously high property taxes. This setup makes winning so much more of a hassle than it should be. I think that with the current setup I would just take the money and the car to avoid accidentally putting myself into massive debt. 750K beats that.
—Guest Lobadobado

With A Smile On My Face!

And no that doesn't mean I'm rich. I'm a RN and also inactive USAF reserve who works hard. Whoever complains about anything that comes along with winning something so great should not enter. That's why they give you half a million. This is the best sweepstakes. Every year all who dream of a better life, having a home has a chance to. Better than no chance at all. The dreams and possibilities are still there. And I would absolutely keep the house.
—JessicaGross

How to Pay the Taxes

Work!! If I am the lucky winner of 2011. I would consider taking the money option. I would consider home expenses, my current income and the abilty to be employed in Stowe as an RN! I think I would enjoy the problem!
—Guest Joyce Ellison

I like to dream.

If there is a cash prize with it I would like to use it for the taxes if not are it is not enough I would sell. I have never had a new home and my children and I have been poor for so long, it would be a blessing to get to visit and find a family for our home and use what ever was left to buy a home we could afford to keep up even if it wasn't new. I like to dream I would be able to keep and I think thats half the fun.
—shinesilvermoon

Dream Home

I would like to think that my boyfriend and I could pull our resources together and afford this place. I would love to think that my boys could grow up in such a beautiful house after spending much of there lives sharing a bedroom in a small rented house in a small dumpy town! This would be a dream come true. I would work my tail off just to keep finances flowing through that house if I had to do it on my own even!!!
—Guest jkoontz7

numbers!!

If you rent a property you pay taxes for that income also, so why not make it simple, 1- you can opt for the cash option and the car, paying the taxes for the money and the car or you take the house ,the cash and the car, live it for a few months and selling it. Any way it is an awesome, wonderfull thing,and you don't need to make any investment.
—isgoodtodream

Financially Responsible Behavior

I've already researched the skill sets of CPAs in my hometown to assist me in decisions if I were to win this. As much as I'd be caught up in the emotional thrill of winning, I can dream now and still plan ahead for taxes, revenue options from the home, and other decisions. I am definitely ready for the ultimate dream of my life to come true.
—Guest Donna

associations

I'd love to win it, would try my hardest to keep it for a while, at least a few years, but I'd love to see HGTV NEVER build at a HOA site again. That ruins it. Those places are freedom killers.
—Guest mejustme

Can't know if you don't try

It would be amazing to win and there is also a cash prize that could help initially with taxes? And who knows, the ski dorm might be able to bring in some good revenue, i'd say give it a shot and enjoy it while it lasts.
—Guest dreamer

I'm not sure what I would do?

I've been entering everymorning for the Dream Home Sweepstakes however I might not be realistic. If a person has to take out a second mortgage just for the taxes, I don't know if it is even worth it? If I did win, Of course it would be very exciting however I would have to think everything through with the taxes. Does anyone know the exact amount of taxes that would be owed?
—Guest Heidi

Dream home reality

It's unfortunate. All of these discussions. I have been entering for a while, and it seems that the reality of all this is the same. You really just won't be able to afford to keep it. The way things are today. If I was to win it, I would have to sell. again like everyone here. Shame really. I would like to think that HGTV is starting to read some of these and maybe put a little something in there to help with all of this. If it is a dream home, then well dreams come free with no hidden costs attached. Or at least give you lets say 3 years of tax free living.
—Guest Mark

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