Can you sell HGTV dream home after winning? Every Dream Home winner so far has done the same thing with their windfall: they either sold it or accepted a cash option instead of taking possession of the home. Cashing out on the HGTV Dream Home
HGTV Dream Home
The HGTV Dream Home is the American cable network Home & Garden Television's annual project house and sweepstakes, held since 1997. The sweepstakes commences with a January 1 television special showcasing the fully furnished, custom-built home valued in excess of one million dollars; viewers are invited to enter online. The 2012 contest drew over 81 million entries.
What happens after you win dream home on HGTV?
HGTV Dream Home Winners Open Up About What Really Happens After Winning Big. Their plans to turn the estate into a bed-and-breakfast were thwarted by zoning restrictions, and they had to borrow money against the house to help pay for cancer treatment for Don’s father. Three years later, the home was in foreclosure and Don was $430,000 in debt.
Do Dream House winners have to sell their homes?
As it turns out, it’s not unusual for winners of contests like this to be forced to sell the properties because they can’t afford the income taxes, property taxes or even the upkeep. Even winners of home make-overs must often sell. According to HGTV, only one of the first 10 Dream House winners has been able to hang on to their winnings.
Can’t you afford your HGTV Dream Home?
The Dream Home contest launched back in 1997 and since then, it literally feels like a dream to watch these people win their ‘dream home.’ However, since it first started, most of the winners have something in common. That’s the fact that they can’t afford to keep their HGTV Dream Home.
Does HGTV give away houses?
However, HGTV and its parent company, the Scripps Network, gives away several homes each year, many of which are more affordable. For more information, see Why Doesn't HGTV Give Away a More Affordable Dream Home?
Do most HGTV Dream Home Winners sell the house?
Given the seriously steep price tag on the HGTV dream homes — and the equally pricy tax bill that comes along with winning one — it likely comes as no surprise that most winners opt to sell the house after winning.
Is there a cash option for the HGTV Dream Home?
In lieu of taking title to the HGTV Dream Home 2022 (and the contents of the HGTV Dream Home 2022), the Grand Prize Winner will have the option of receiving $750,000 in cash (the “Cash Option”).
How much taxes do you have to pay if you win the 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.
How do taxes work if you win the 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.
What happens after winning HGTV Dream Home?
Each year's HGTV Dream Home Sweepstakes winner receives the home itself, all of the artwork and furnishings inside the home, a big cash prize, and a new vehicle. Sometimes, additional prizes, like a doggie dream homefor pets or a new boat for waterfront properties, are also included.
How much are the taxes on the HGTV Dream Home 2022?
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.
Does the HGTV Smart Home come furnished?
HGTV unveils the newly built HGTV® Smart Home 2022 in Wilmington, NC. The winner will receive the fully furnished home, a 2021 Mercedes-Benz GLC 300 and $100,000 from LendingTree, a prize package valued at over $1.2 million.
Who actually wins the HGTV dream homes?
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.
How can I avoid paying taxes on prizes?
5 ways to avoid taxes on lottery winningsConsider lump-sum vs. annuity payments. ... Charitable donations. Donating some of the lottery money to charity will reduce your tax bill when you're a big winner. ... Gambling losses. ... Other deductions. ... Hire a tax professional.
Do you have to pay tax if you win a house?
You are taxed on anything you win, whether it's a prize or cash. Taxes are payable on any winnings at the federal and state levels. Most tangible prizes like cars and homes are taxed at their fair market value.
Has the HGTV winner been notified 2021?
Jeff, who lives outside of Austin with his girlfriend Jody, was happily shocked when designer Brian Patrick Flynn informed him that he was the lucky winner of the brand new, fully furnished home, along with $250,000 cash from Rocket Mortgage® and a 2021 motorhome from Camping World.
What are the odds of winning the HGTV Dream Home 2020?
By entering every day online, you bring your odds of winning from "impossible" to one in 1.36 million. Not great, but if you lose, you haven't lost anything except the brief time it takes to fill out and submit an entry form.
Is it better to take the cash prize or the house?
The moral of this story is clear: Unless winners of these sweepstakes sell their current places and move, they probably can't afford to take the hit. On the other hand, selling the prize house — or taking the cash instead of the house from the start — can result in a nice profit.
What is the value of the HGTV Dream Home 2020?
$2 million dollarsCongratulations to Susan O'Gorman of Perry, Georgia; she is the winner of the HGTV® Dream Home 2020 sweepstakes, a grand prize package valued at over $2 million dollars.
Where is the 2021 HGTV Dream Home location?
Newport, Rhode IslandHGTV Dream Home 2021 is a stunning waterfront masterpiece in Newport, Rhode Island.
How much is the HGTV Urban Oasis worth?
$600,000The prize package, valued at over $600,000, includes the newly built, fully furnished home and $50,000 from LendingTree. Eligible entrants can enter twice per day at HGTV.com/Urban, where they can also find additional sweepstakes details and the official rules.
Where is the first dream home on HGTV?
Feb 16, 2018. In 1997, HGTV’s very first Dream Home, a charming log house crafted of Nordic pine and overlooking the Grand Tetons in Jackson Hole, Wyoming, launched a series of fantasy abodes, each just a little more impressive than the last. The network has debuted a new Dream Home every year since, ...
How much is the dream home?
The Dream Home grand prize—typically $250,000 in cash, a car, and sometimes a boat, in addition to the home itself, usually valued at $1 million or more—comes with a federal income-tax bill of about $700,000, according to an analysis by Vocativ, plus state income and real-estate taxes that vary by location. The cash alternative, on the other hand, ...
How many people have won Dream Homes?
Of the 21 people who’ve won Dream Homes over the years, only six, or about 28 percent, actually lived in their home for more than a year. The vast majority either took the cash alternative or sold the house back to the developer within a year of winning.
Who is the third person to everwin a dream home?
The third person to everwin a Dream Home, Belinda Brown of Kingston, Tennessee, tried to rent out her Rosemary Beach, Florida, retreat to cover the cost of taxes but ended up owing the IRS almost $300,000. She sold it after 2 years.
Who won the 2014 Dream Home?
2014 Dream Home winner Laura Martin, far left, with her husband and two of her children at the Lake Tahoe home. Courtesy of Laura Martin.
Does Scripps want to be in real estate?
“Scripps did not want to be in real estate business,” he says.
Why is it called a dream home?
Winning it often brings a host of complicated financial decisions, but there is certainly a reason why it’s called a dream home—because it’s a damn nice house. All of the homes have been located in beautiful vacation locales with lush surrounding and often stunning views.
When did the HGTV sweepstakes start?
HGTV began its now-famous sweepstakes in 1997, and since then the contest has become one of the biggest yearly giveaways—with some 94 million entries at last estimate. The contest begins every year on January 1st, when HGTV airs unveils the sparkly new Dream Home in a TV special. The entries pour in, and come spring, a winner is revealed.
What is the vision of the dream?
As its spokeswoman Emily Yarborough put it, “Our vision of the dream is that it enables you to do what you want to do.”. And indeed many of the winners have used what’s left after the sale and taxes to upgrade their existing homes, build themselves their own dream home, help their families out, or travel.
HGTV Dream home - what happens after?
Was wondering what happens after someone wins a 2 million dollar home - do they move in, sell it, rent it out?
Comments (8)
When I win, I think we will have to sell it just to pay the income taxes. But I plan to take my whole family there for a vacation before we sell. ;-).
What Is the HGTV Dream Home Giveaway?
The HGTV Dream Home Giveaway is an annual sweepstakes from the Scripps Network's Home and Garden Television channel, which has run since 1997. Every year, HGTV uses a series of HGTV Dream Home television specials to showcase a gorgeous new home that their experts have built, then give it away.
How to Enter and Win the HGTV Dream Home Giveaway
If you want to know when the HGTV Dream Home Giveaway starts, look for an announcement toward the end of each year. Rules can change from year to year, but here are some tips on how it usually works.
How the HGTV Dream Home Is Built
HGTV's experts scour America for the right setting for each year's Dream Home. Previous year's homes have included beach getaways like the 2016 Dream Home in Merritt Island, Florida, a luxurious farmhouse in Sonoma, California, a mountain retreat in Stowe, Vermont, and many other dream locations.
What Do Dream Home Sweepstakes Winners Receive?
Each year's HGTV Dream Home Sweepstakes winner receives the home itself, all of the artwork and furnishings inside the home, a big cash prize, and a new vehicle. Sometimes, additional prizes, like a doggie dream homefor pets or a new boat for waterfront properties, are also included.
Take Note: Even If You Win the Dream Home, You Probably Won't Live In It
For many people who dream of winning the HGTV Dream Home, finding out that you probably won't be taking up residence in its luxurious halls is a disappointment.
Tour Previous HGTV Dream Homes
Want to know what the big deal about the HGTV Dream Homes is and why so many people want to win one of these amazing homes? Here are photo tours of many of the beautiful homes that have been given away so far:
The “Reality” of Reality Home Television
What’s The Problem with Dream Homes, Anyway?
- Taxes, mostly. Since the winnings are considered income, Uncle Sam wants his cut. And often, so does the state in which the property is located, as do other local jurisdictions which may have taxing authority. 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, depen…
A Snapshot of Past Winners
- The 2007 winner actually ended up declaring bankruptcy, in part because he couldn’t afford the $2.5 million Texas mansion he won, though not for lack of effort. He listed the place for $5.5 million, but after it went into foreclosure it sold for $1.43 million – $1 million less than the local real estate community said it was worth. The 2008 winner would have had to pay sales tax of ro…