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The new 2013 home is fantastic. Love the details and colors!

DH has said I can give him a tour of the DreamHouse 2013 TODAY! I'm excited in doing so. I just checked out the NuCedar siding used on DH2013. We are pleased with what we learned from their site. Now, we're trying to find a distributor in our area with the siding. It's not listed YET. I learned that the company can create the siding for the entire house in 40 minutes AND Sherwin Williams is the provider of the colors for them.

W2G!

Here's a WAG, a Wild Asiento Guess on the cost of taking over the DH 2013:

Firstly, prepare to pay about $892,000 Fed tax and $157,000 S.Carolina state tax on the total Sweepstakes prize Apr 15, 2014.

I am supposing the almost certain Sequestered fed tax of 39.6% rate is used; plus S.Carolina 7% state tax added to that:
The cash needed to pay income taxes to assume ownership of the DH is about $550,000 after having deducted from the taxes the $500,000 cash provided from the Sweepstakes.

For a family to run the home using a $550,000 mortgage payment, (which is a loan using the Prize dwelling/lot as collateral), cost(s) of ownership would be about $5500 a month...

+A 30 year $550,000 mortgage with 4.5% rates? Lost my calculator, but maybe $3000 a month? Someone help me out.
+Insurance on the appx $1.2M dwelling/furniture in the Coastal Flood Zone is about $1300 a month.
+Charleston County property tax on $1M dwelling/lot is .0078 of valuation totaling about $10,920 or, $910 a month.
+HOA is $200 a month.
+Utilities, (phones, tv, internet, elec/nat'l gas) might be $350 a month.
I'm not Wagging my tail.
I would take the $1,500,000+ option instead. (You will use that to pay tax on the GMC and on the cash portion of the Prize.)

This message has been edited. Last edited by: TangoW,

Have any of the HGTC folks ever lived in the south? A screened porch is much more appropriate in these areas. And, though I love the idea of living in a marsh, there are mosquitos!

They will no doubt start a thread just for the new home, FYI (this thread is for the now given away Green Home).

That being said, most people sell these, so the above post referring to the cost of owning it most likely won't apply. Realtors are usually lining up when you arrive to claim it, or contact you immediately once you are presented with the prize. You can sell it and at least keep whatever is left over from the sale after fees, taxes, etc.

Overall a decent home - at least there were no red or orange rooms. Of course, you have to be pretty cool with nature in a marsh area like that, there - chances are you'll eventually wake up to some snakes on the deck and a small Gator basking in that lap pool.

Tango, there is no tax due before assuming ownership of the house. Taxes are not due, as you note, until April 15th of the year following the earnings - in this case 4/15/14. The only income taxes due the state of South Carolina would be a non-resident rate (assuming the winner now lives elsewhere)which is no doubt less than the seven percent you cite and would probably not accrue on the car and the cash as they would have nothing to do with SC. The winner may have liability in the state in which they reside.

Also, estimating taxes on HGTV's declared value of the prize will probably cost quite a bit more than using the fair market value. Nobody pays sticker price on a GMC and comparative sales will set the FMV for the house.

Watching my DVR of the presentation of the house, looks gorgeous. Linda always does such a good job in decorating. So far no huge issues in the house design that I see but I don't live in the south. Wouldn't mind winning this one!

I never understand why white is great when they do it and wallpaper is great when they do it but when they rate a house the first comment is those .I love the home but have been in that area and wow mosquito heaven .I even got an infection from a bite .

wow tango that is a real eye opener .I knew it was a lot because i have seen posts from other winners on regular net how they thought it was a dream to win and then the nightmare hit home .THERE POCKETBOOKS

quote:

Originally posted by Chuck Steak:
...The only income taxes due the state of South Carolina would be a non-resident rate (assuming the winner now lives elsewhere)which is no doubt less than the seven percent you cite and would probably not accrue on the car and the cash as they would have nothing to do with SC.

Chuck, I will post some comments from Milton, a previous winner about taking ownership through the signing over of the LLC document.
CPA, come back!
I removed the words, "After taking ownership", from the post I made on taxes. :>)



With regard to your post above: I believe the total Sweepstakes' Category Prize you choose will be considered income-taxable by S.C. as has been among CPA's remarks of years' past.
S.C. has a Fed tax offset of $2800, and other assorted tax considerations need be considered, including, as you mentioned, Chuck, a winner who comes from an income tax free state.
SO! MBers,
A CPA, a top-notch realtor, a tax attorney and a good night's sleep are all important in considering the acceptance of the 2M dollar Plus Dream Home Sweepstakes prize. I sent along the WAG in hopes it will put a bit of light on the financial requirement when the winner has documents in his/her hand and limited time to meet the deadline to respond. HGTV has, in the past, provided very good help with this decision.

Kind regards to you, and Happy New Year to all.
shoeshine boy.

This message has been edited. Last edited by: TangoW,