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Author: billjam Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121175  
Subject: Re: Question based on TV show Date: 4/13/2011 8:35 AM
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How the heck does HGTV give away its annual dream home? They are typically valued north of $1m. So the winner has to come up with more than $350k in federal income tax the year he wins it plus whatever state tax he may be subject to. The average viewer probably can't afford the property taxes on the place anyway and would have to give up his job in order to move to wherever it is. Doesn't make a bit of sense.

--fleg


Most winners probably sell the house and pocket the cash after taxes. Well reported case a few years ago of someone who tried to live in the house. Moved without a job. Owed something like $400K in taxes they couldn't pay. A real financial disaster.
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