If you win the HGTV Dream Home Giveaway, do you have to pay a gift tax and/or property taxes on the home?
Jun 25th, 2009 | By admin | Category: Free Giveaways
Rachel asked:
If you do, how much would that be?
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You don’t pay gift tax, but you do pay regular income tax. The maximum individual tax rate is 35% so you would pay nearly that much. Plus state income tax. That is to just receive the house. Then of course you would have to come up with the property taxes each year. That is why people who win those big prizes end up selling them most of the time. After they pay the income tax, then they may have enough left to buy a smaller house.
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sure any amount over $11,000 is subject to gift taxes and yes the property taxes mus stay current every year
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It would be considered income by the feds and as a result it would be added to your taxable income. You would also have to pay any applicable sales tax or property taxes. It could all add up to a pretty large amount of money.