How do taxes work if you win the HGTV Dream Home?
All federal, state, and local taxes on the Grand Prize are Grand Prize Winner’s responsibility. The Grand Prize Winner will be issued a 1099 tax form for the actual value of the Grand Prize.
How much are taxes on the 2022 HGTV Dream Home?
A: They will still owe the $950,000 income tax (federal and state) on the ARV. If they sold the DH for $1,900,000, then there would be no additional tax. Anything they sell the DH for over $1,900,000 (after selling costs) will be taxed as a short term capital gain at 35% federal and 8.25% state.
Has anyone won the HGTV Dream Home?
Meet the lucky winner of HGTV Dream Home 2022 in Warren, VT. A huge congratulations to Karey Wolstenholm of Overland Park, KS! She is the winner of the HGTV® Dream Home 2022 sweepstakes, a grand prize package valued at over $2.4 million.
Do you pay taxes on HGTV Dream Home?
If you’re lucky enough to win an HGTV Dream Home, you’ll be responsible for federal income taxes on the value of the property or improvements, plus state income tax, depending on your state of residence.
Is HGTV my lottery dream home Fake?
Typically lots of planning, edits, and guidance from the producers combine to make the finished product look both believable and interesting. “My Lottery Dream Home” is no exception. While the people on the show are real lottery winners, their house-hunting journey isn’t always what it appears to be.
What are the odds of winning HGTV Dream Home?
200 in 136 million, or about 675,000 to one. Ugh. That’s a lot of money for a prize with such long odds of winning.
What if you won a million dollars what would you do with the windfall?
To summarize, about half of the one million dollar windfall would go to giving and saving with the other half to investing in buy-and-hold cash flow producing real estate. The investing will hopefully produce many more millions of dollars over and over again.
How much are the taxes on the HGTV Dream Home 2021?
Santo said the winner also has to pay income tax. According to HGTV, the grand prize includes the fully furnished house, plus $50,000 cash, valued at a total of about $684,000. Santo says the winner will be taxed at the top federal rate of 37 percent. Add on state taxes, and they’ll owe between $238,000 – $266,000.