So if you win a house in a contest...

[TheSiege]

Say it was valued at $2mil?

 

[JS80]

Prob close to 40% all in depending on the state.

 

[BoomerD]

Income taxes on the stated value of the house...state and federal.

I think I'd be fighting to have the house re-appraised to reflect the current (probably lower) value before paying the taxes though.

I laugh at folks who win lots of "Prizes" on game shows...very few can afford to KEEP those prizes...the tax bill for them is just too high.

 

[TheSiege]

so lets assume is was valued at $2mil thats 800k in taxes. That sucks, youd have to sell it and pay taxes on that, which means youll be lucky to get 1 mil when all is said and done, assuming you could sell it

 

[Ns1]

Originally posted by: TheSiege
so lets assume is was valued at $2mil thats 800k in taxes. That sucks, youd have to sell it and pay taxes on that, which means youll be lucky to get 1 mil when all is said and done, assuming you could sell it

you get 2m, you pay 800k taxes, you still up 1.2m

sounds pretty fair to me

 

[phreaqe]

Originally posted by: BoomerD
Income taxes on the stated value of the house...state and federal.

I think I'd be fighting to have the house re-appraised to reflect the current (probably lower) value before paying the taxes though.

I laugh at folks who win lots of "Prizes" on game shows...very few can afford to KEEP those prizes...the tax bill for them is just too high.

yah. my dad and i won a harley davidson motor cycle back in 2000. it was valued at roughly 20K and we hav to pay 39% tax on the thing to keep it. it was ridiculous. there is no way the government should get that much on prizes. a fair tax of like 10% or something is fine but almost 40% is beyond stupid.

 

[TheSiege]

Originally posted by: Ns1

Originally posted by: TheSiege
so lets assume is was valued at $2mil thats 800k in taxes. That sucks, youd have to sell it and pay taxes on that, which means youll be lucky to get 1 mil when all is said and done, assuming you could sell it

you get 2m, you pay 800k taxes, you still up 1.2m

sounds pretty fair to me

IF you can sell it

 

[flxnimprtmscl]

Originally posted by: Ns1

Originally posted by: TheSiege
so lets assume is was valued at $2mil thats 800k in taxes. That sucks, youd have to sell it and pay taxes on that, which means youll be lucky to get 1 mil when all is said and done, assuming you could sell it

you get 2m, you pay 800k taxes, you still up 1.2m

sounds pretty fair to me

800k in tax on something you won sounds fair to you? Interesting.

 

[zerocool84]

Look at all those Oprah audience members

 

[Ns1]

Originally posted by: flxnimprtmscl

Originally posted by: Ns1

Originally posted by: TheSiege
so lets assume is was valued at $2mil thats 800k in taxes. That sucks, youd have to sell it and pay taxes on that, which means youll be lucky to get 1 mil when all is said and done, assuming you could sell it

you get 2m, you pay 800k taxes, you still up 1.2m

sounds pretty fair to me

800k in tax on something you won sounds fair to you? Interesting.

talk to a tax planner beforehand or don't accept it??



i'm not gonna feel pity on somebody who got a 2m house.

 

[darkxshade]

Originally posted by: TheSiege
so lets assume is was valued at $2mil thats 800k in taxes. That sucks, youd have to sell it and pay taxes on that, which means youll be lucky to get 1 mil when all is said and done, assuming you could sell it

If you win the lottery for the same amount, you would have to pay taxes on it too so what's your point?

 

[Slew Foot]

You got the house for free, put it at 1.7 mill, walk away with 1 mill after taxes. Some idiot will bite at the "deal".

 

[ultimatebob]

Originally posted by: BoomerD
Income taxes on the stated value of the house...state and federal.

I think I'd be fighting to have the house re-appraised to reflect the current (probably lower) value before paying the taxes though.

I laugh at folks who win lots of "Prizes" on game shows...very few can afford to KEEP those prizes...the tax bill for them is just too high.

That's why the game shows now take ownership of the houses on shows like Extreme Makeover and "lease" them back to the winner, so the winner doesn't get stuck with the tax liability.

 

[AlienCraft]

Originally posted by: Ns1

Originally posted by: flxnimprtmscl

Originally posted by: Ns1

Originally posted by: TheSiege
so lets assume is was valued at $2mil thats 800k in taxes. That sucks, youd have to sell it and pay taxes on that, which means youll be lucky to get 1 mil when all is said and done, assuming you could sell it

you get 2m, you pay 800k taxes, you still up 1.2m

sounds pretty fair to me

800k in tax on something you won sounds fair to you? Interesting.

talk to a tax planner beforehand or don't accept it??



i'm not gonna feel pity on somebody who got a 2m house.

Predict the future much? Discuss an event a priori? Now THAT's interesting!

I wonder if a family in such a situation could form an LLC , have the LLC accept theprize and avoid some of those taxes?