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
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
- 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.
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
- 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
- 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 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!!!!!!!!!!!
lower the dream
- I think they should give away homes in the $ 200,00.00 -300,00.00 range. The way a home is decorated is what makes it look like a dream and most people could afford to keep it and enjoy it.
- —Guest Retha Harris
Taxes and More
- I have read this and know it is a topic of taxes and this should be a concern, but at the same time what about a job? If a person does not know for sure they would have work or some kind of income, after they received the home, how could they venture out and try to win a home, and not have any money coming in? My husband could retire and I am retired ( early) but still in all said here, it looks like it would take a millionaire to afford any home won?l I would say you would need to find a steep paying job quickly! You do not have time to look before hand as you would not know you are going to win.
- —Guest Carol W
- We would find a way and pay the taxes. Because of not having a house payment we should be okay to pay the taxes as we would just need to save the money each month as if making a house payment. We do have a home we could sell, and we can also rent it out ( the bank set it up like this) But we live close to people and it is so noisy and we really would give anything to have a nice home, land to look at the sky and the land and beauty around us and the birds singing and much less people type noise all the time. We just love quiet when we want it ( maybe we are odd am not sure?)
- —Guest Carol W