A lot of people would go down the tubes trying to hang on to it.
It comes with all the decor, which is valued at top-market. I hope he manages to sell it and make a little after taxes.
If he doesn't hold on to it for two years (I think that's how long to qualify for lower capital gains taxes) he's going to pay through the nose in income taxes too. He'll pay far more in increased income taxes than it would cost to keep it for two years - and live there at the same time.
Get a loan against to cover the two years.
My wife and I both entered to win that house and watched the show. But we both knew we would be calling the local realitors within 15 minutes of teh tv crews leaving. Take the cash.
That is the reason I never enter a contest for a new home or “A Brand New CAR!”. I could not afford the taxes and insurance.
Why didn't HGTV offer a dream home a likely winner could afford to live in?
He's lucky with such cheap taxes. In comparison, mine are at a much higher rate. Still, it's a win-win for him.
He needs to open a Bed & Breakfast operation
I knew that would happen. I saw this back when they first advertised it and said if I won I'd have to sell it because I couldn't afford the taxes...........
Anyone with sense would know that it costs a fortune to maintain a huge house and pay taxes on it. You just have a good weekend in the house and list it with a high power realtor on Monday. Buy a decent house and maybe a car a few years newer with the sale and consider yourself blessed.
http://www.hgtv.com/hgtv/gl_design_plans_strategy/article/0,1785,HGTV_3569_4357788,00.html
..anyone who thought the average person would be able to live there must be a liberal
Doogle
Couldn't afford to live there because of taxes?
HGTV giveth, and the government taketh away.
"The guy has a good attitude about it, especially the part about enjoying it for 3 weeks."
If it sits on the market for a while, he may get to "enjoy" it a lot longer than he is planning.
Correct me if I'm wrong, but won't he also have to pay about a million in income tax on it for 2006? IIRC that kind of win is considered income.
I actually live here, Lake Lure, and can see this beautiful home on the side of the mountain across the lake. I took a tour of it, and it is really cool! Anyway, my wife has a friend that works for HGTV, and she told us that all 10 yearly winners of these dream homes have had to sell them.
Doesn't he need to live in it for 2 years in order to sell it without paying horrendous capital gains taxes?
Too bad, at least he'll make something if he sells - even if taxed. Hopefully it'll be a tidy sum.
These guys will never make a dream house that I'd like because they ain't that creative.
"Last year's electric bill: $540,000. Please keep doors closed."
Further proof that no one ever truly owns their home. They buy a home and then lease it from the government.
We need to change from this mindset to one of, after retirement (on a fixed income), property taxes stop on one's primary residence. Too many people work hard their entire lives, build up a neighborhood so that it is attractive, and then are forced out of that neighborhood by increasing property taxes. Let localities take their revenue through property taxes on those still working and on sales taxes.
(No more Olmert! No more Kadima! No more Oslo! )