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Taxes etc Sign In/Join 
posted
Anyone do the calculations on if its better to claim home then sale VS taking cash prize in lieu of house?

Thinking you might get more claiming house and selling it. But its California, so wonder how big the hit would be after all is said and done.

Hmm maybe claim house ebay everything out inside, lol.
 
Posts: 2 | Registered: Feb 10, 2014Reply With QuoteReport This Post
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Selling the house should always net more money, but may require some time to accomplish. One thing for sure is if you sell the house you will have a real "fair market value" on which to pay taxes rather than a possibly inflated statement from the promoters.
 
Posts: 748 | Registered: Jan 02, 2005Reply With QuoteReport This Post
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The value is overinflated for sure, Chuck. Someone found earlier a few dream houses that actually sold in the 800's. You are paying taxes on the full retail value of the furniture, artwork and TVs, etc., but in reality they are used and you would only be able to sell them for a fraction of the stated value. If you claim the house and are not able to sell it immediately, you will pay taxes on value stated 2,089,400. Based on past houses actual sales, this is super over-inflated. It almost seems the cash prize would be the better bet because you actually get $1.3M cash and a $77,000 Denali. You pay taxes on $1,377,000 and keep the cash that's left. In the real world, if the house sold for $800,000 after some time and you had to pay taxes on $2,089,400, which includes a membership to Sutters Mill Club and full retail of everything in the house, you would really lose out... I have always wanted to keep the home if I won, but now would really have to think about it. The cash prize may be the wiser move.


~~~~Dream On!!!!~~~~
 
Posts: 398 | Location: Naples, FL | Registered: Dec 07, 2007Reply With QuoteReport This Post
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If I win,I would make an appointment with my accountant. Each situation is different. There are always many variables to look at, but oh so exciting.
Smile


*****Catch the Excitement*****
******Dreams and happiness to all my MB friends******
~ ~ ♥ ~ ~♥ ~ ~♥~~♥~~♥~~♥
a flapjaw and a Sheltie collector avatar fan
Real Friends Believe in Your Dreams
 
Posts: 5618 | Location: Whittier, California | Registered: Mar 23, 2005Reply With QuoteReport This Post
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Absolutely, a decent accountant would never have you pay taxes on an inflated value, it's just harder to determine the actual market value without a sale.
 
Posts: 748 | Registered: Jan 02, 2005Reply With QuoteReport This Post
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Will this is the week when someone will have to start thinking about that wonderful house, taxes, and excitement.


*****Catch the Excitement*****
******Dreams and happiness to all my MB friends******
~ ~ ♥ ~ ~♥ ~ ~♥~~♥~~♥~~♥
a flapjaw and a Sheltie collector avatar fan
Real Friends Believe in Your Dreams
 
Posts: 5618 | Location: Whittier, California | Registered: Mar 23, 2005Reply With QuoteReport This Post
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I think we've talked in past years how HGTV would give you a tax form with the full prize amount and report it to the IRS. You could dispute this without selling by getting three current market value appraisals of the house and use the average or middle value. Then see if there is any way to get down the value of the furniture since it is already used in what is essentially a model home before you get it. I would definitely love to win and keep the house though!!!!!


~~~~Dream On!!!!~~~~
 
Posts: 398 | Location: Naples, FL | Registered: Dec 07, 2007Reply With QuoteReport This Post
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You are correct sillykitty. The 1099 will state what HGTV values the package, but like any property, you can have a re-evaluation done.


*****Catch the Excitement*****
******Dreams and happiness to all my MB friends******
~ ~ ♥ ~ ~♥ ~ ~♥~~♥~~♥~~♥
a flapjaw and a Sheltie collector avatar fan
Real Friends Believe in Your Dreams
 
Posts: 5618 | Location: Whittier, California | Registered: Mar 23, 2005Reply With QuoteReport This Post
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