How Do You Pay Taxes On HGTV Dream Homes?
So you’ve just won a dream home, congratulations. After the initial excitements wears off, however, you may find a nasty little surprise waiting: taxes. According to the IRS, all prize money is eligible for taxation. Unfortunately, this also applies to prize assets, meaning that you may be stuck with a big bill. Handling the tax burden of an immense prize can take a little doing, but it is possible. Request a 1099-MISC from HGTV. Companies delivering prizes must provide you with a 1099-MISC that indicates their appraised value of the prize. When it comes to the HGTV Dream Home, this usually means a home worth several million dollars, $250,000 in cash and the value of a car that comes with the home. Hire an outside appraiser. While it’s not always the case, many prize-givers overstate the value of the prize, which makes the prize seem more amazing in their press releases and coverage. As such, you should hire an outside party, either an accountant or property adviser, to make a more rea
