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

Responses: 339

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Do you think that the taxes on the 2 million dollar HGTV Dream Home are so high that you hesitate to enter? If you won would you sell right away, or would you keep the house and try to find a way to make it work? Give your opinions here!

Cash option

I don't think people read the fine print. There's actually a cash option, though you don't get to keep anything... Furniture, car..ect.. You don't end up with the hassle of a huge tax debt and selling the house!! I'd go for the cash option !!! I read the fine print!
—Guest Rgum

blessings

i would take the cash payment for i know my family would not move to that area.i would be thankful to God allowing money to flow my way
—Guest neicy

What a gift!

I would love to win any prize then I would hand it over to my kids who have a much higher income than I do and I could live in the house with them!
—Guest Gerriekay

mr

Make as much money by listing the home then buy a 400k home in cash here in Texas after it sells. By the way that's alot of house and more affordable.
—Guest Eric Carter

Take out a loan against the house

I would check into taking out a loan for the cost of the Taxes owed against it. You could get low payment because the loan would be a lot less than the value of your house and maybe get a little more for the first year of property tax. Its worth trying. Good luck!
—Guest Dollie

Make it a vacation rental.

Fantastic home but not my dream house so here is what I would do. Make this a vacation rental property. Sundance would pay your tax/upkeep. Throw in ski season and you have some serious coin. Hopefuly zoning would not get in the way.
—Guest Jim Graziani

Down Size!

HGTV should choose to down size the prize that they offer. Most of us would be living in a "dream house" if it were a $200,000.00 home!And, why the vehicle? Just give away a "normal" house with nice furniture!!!
—Guest Sharon

Blessings being kept

Oh how it would be nice to give my three young children a place to call home..what's for you is for you and god told me that it's my time...I would keep it and make it work...the team put so much work into the home and I would not change a bit.. My way of keeping the home and paying the taxes is in gods hands because he the only one that can give and take away...and he said it's my time so he will handle that part and take all my families worries away
—Guest Kee5

Truly a dream come true!

I would be delighted to take all the prizes - the home, the $, and the car! Unless my tax-person says it would be foolish for me, I will run not walk to collect all! The location and furnishings of the home are perfect for me and my family. I can hardly wait for the winner to be announced. Good luck one and all!
—NapaChef

Can't wait to be ambushed...

While I have considered this question daily, because like many peole who already posted I am determined to win, I want the house. I want to quit my job and rebuild our lives. So tired of the rut we are in. Financially, winning this prize can be a burden. You get $500,000 but the taxes could be closer to $750,000. So sure you get a new home, but you win more debt. You could lose everything when a tax collector comes knocking. On top of all that I have read the HOA rules and there are rules that I don't really like, like only two vehicles and they have to be parked inside. No more than two pets (cats or dogs) no matter what, no building extra cover without their approval. No motorhome visitors...HOAs for those who want to live the life it looks to promise may find themselves in adversity. But even knowing all that, it would be the answer to my prayers, because good or bad, this win demands a life changing event. What a God send it would be.
—Guest Brady Bunch

When I WIN the Home I plan to...

Go to Utah and have a grand time! Then interview local agencies to see if i want to use this home as a vacation rental and have residual income or take the cash and pay off all my current obligations and live a debt free life. If the rental option would put me in further debt with no cash-flow I would definately take the cash option and live in the new found freedom of NO DEBT. Either way I begin living the dream.
—Guest Jubilee

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

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