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

Responses: 337

By Sandra Grauschopf, About.com Guide

I would absolutely love to be lucky enough to win the HGTV Dream Home 2010! With the cash prize, I would immediately put $450K in the highest-yield thing I could (whether that was savings, cd, etc). The remaining $50K I would put into the highest yield savings account for ease of use in case I needed it for expenses. The next thing I would do is market the home as much as possible as a vacation home. Even though you are taxed on rental income, as long as you spend 14 days or less there, you can deduct all home expenses (util, interest, etc.) from your taxes. I would use every entrepreneurial bone in my body to devise a plan (and consult with a CPA). April 15, 2011 would give me at least a year to do so; I'm confident that I could come up with a way to keep it. What a beautiful home... where there's a will, there's a way. (Although if I had to end up selling it, life would still be just as grand...what an adventure!)
—Guest Candace

As a single father with 2 girls, I would jump at the chance to move. I live in the desert now, and would sell my current house to help with the transitional costs associated with such a gift. My girls would love it, and I could continue my small business here in Nevada from the comforts of my new home, in NEW MEXICO!!!!
—Guest JohnInVegas

I have never completely owned a home free & clear but I would love to live in New Mexico with my friend plus have a new car again. I would try to be very conservative to be able to keep this house, I love the location & style and beautiful contryside. Good Luck to everyone that enters.
—Guest Marjorie McGill

This house is amazing! As much as I would love to live in it, realistically, it simply would not happen. The Dream Home is supposed to be about giving you something, not plunging you into more debt that you can't handle simply for a house. If I won, I think the best option would be to keep ALL of the furnishings, EVERYTHING, maybe the appliances. Just know that it owould lower your sale price. You could sell the house and get at least $1.1M+ in that gated community area. So, I would have a new vehicle, all the furnishings I need(give or take some paint, flooring, tiles, and lighting fixtures) to recreate the dream home on a cheaper(but just as nice) piece of land, and after I've purchased another home of just about the same size and layout, put in an amazing 16ft. wall of turquoise and added other touches to make it a dream home(with all of those amazing furnishings :]), the leftover money from the sale of the home (don't expect much), about $250K after taxes, and a cheaper DREAM HOME.
—Guest Eva

It would be great to win! A great place to vacation this summer and then on the market! Even if i walked away w/ $700K I could be get out of debt (just a car and home) and purchase a smaller dream home in the area I live in now or maybe stay in New Mexico. I wouldn't expect not to continue working, just maybe a job I LOVE and it wouldn't all be about the money. Everyone keep "dreamin"!
—Guest Lisa

I'd stay in the house for about a month and live the dream. But, I'd have to sell it, pay the taxes, and hope to walk with at least a half million.
—Guest DreamGirl

To DREAM! "Oh you can't afford the taxes or the IRS will get you, it will cost $700,000, couldn't afford the property taxes".....who cares? You telling me you wouldn't want to win? The chance to spend a week’s vacation in a Beautiful home that I can, even temporarily, call my own. Then, pack up my new SUV with anything I can fit and drive it home. Never looking back as the realtor passes me to hammer in the sign. Yeah, I’d love to win this home. Anyone interested in coming out if I win, let me know...I'll be having one heck of a garage sale (everything's new) and the outdoor Grill will be put to good use.
—Guest Aaron

Yes, Yes, Yes!! I would love to own this beautiful home, But it took me and a few weeks trying to figure a way to keep it, and then reality set in There is just no way to keep this home with no money coming in, you really would have to have a lot of savings, or cash flow coming in, in order to consider keeping this home, and it hurts to say that. It's sad, but true, and I do hope saying that doesn't let the air out of anyone's bubble. But... the cash money and the GMC Terrain are Great!!! Great!! Great!, something just as wonderful to be so Thankful for. I have never owned a new car in my life, and the peace of just being out of debt is "A Dream Come True," Just think, Debt Free and you'll never have to be in debt again, who could ask for more! May the Winner live Healthy and spend Wisely! Congratulations!!! to the HGTV 2010 Winner, whoever you may be. Ali
—Guest Ali

People, BESIDES annual property taxes, you'd have to pay income tax, federal, state, and city for winning the prize. The retail value of the prize is $2,038,375. The 2010 IRS valuation is telling me I'd owe over $646,000, and that's just federal. AND that's besides the electric bill and the property taxes. Are you guys thinking this out clearly? That $646,000 will be due on April 15, 2011... hire an accountant, for $2,000 he could get you an extension until October 2011... lol.... property taxes are the least of it.... $ 500,000 does not cut it!
—Guest Sabrina

The total prize package is worth 2 Million. The total amount is considered income so you pay 35% minimum or at least $700,000. You have $500,000 cash which isn't enough. Sell the house for what is worth maybe $1.4 million, less $700,000 taxes you have a car and some furnishings if you want to keep and $700,000 cash in hand. Most people here cannot afford the taxes I don't care who will provide.
—Guest Randal with one L

I would be very happy to win this home, it would be like a new start for me and my children and grandchildren. Very nice location. Taxes would be an after thought because as said previously, God will provide.
—Guest joraven

This is the most beautiful home I have ever seen and the location is breathtaking . I have been to Santa Fe and around the location many times and would love to live there. However as a 73 year old woman on a very small fixed income I would have to sell it if I won. But this would be the chance of a lifetime to fulfill a dream I've had all my life to be debt free and own a nice home decorated in my own way. Anyway I can dream. God bless and good luck to all.
—Guest donna smith

We have five grown children who all have great jobs. We were always there for them when they needed help so we feel now it's their turn to help dad and mom out, besides they will be visiting us quite often I'm sure. we are a very close family.
—Guest NINA (not ninea)

I truly Love the house, but I would have to sell it, get a cheaper place, and donate to some of the children's organizations. Robin
—Guest Robin

If I won this dream home I would definately pay the taxes and keep it, this is beyond my dreams, I love HGTV. I have a big family and we would all enjoy living in New Mexico.
—Guest Beverly

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Sandra Grauschopf
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