Visualizing Data to Promote Better Public Policy

            FB-icon.jpg Twitter-Icon.jpg G-Icon.png

Income Tax Consequences of Winning the HGTV Dream Home Lake Tahoe 2014

Dec 27, 2013


This year’s HGTV 2014 Dream Home Giveaway is in Lake Tahoe, California. According to the HGTV contest rules, it comes with a home and furnishings valued at $1,760,000, $250,000 in cash, a $77,000 2015 GMC Yukon Denali, and a $2,400 membership at Schaffer's Mill Club--a total value of $2,089,400.

Of course, the $250,000 in cash will come in handy because if you win the dream home, be prepared for a hefty federal and state income tax bill which I have estimated in this post (this analysis excludes the multitude of other taxes such as any deed or transfer taxes and, most especially, the property tax which you pay year, after year, after year . . . well, you get the picture).

Nonetheless, the federal income tax bill alone comes to a whopping $764,040. California is the worst state to locate this contest in because it has the highest income tax rates in the country with a top rate of 12.3 percent. As such, you will owe the state of California another $229,234 in income taxes. If you plan on keeping this home, best be prepared to take on a second job or take out a home-equity loan to pay Uncle Sam and California. The $250,000 in cash barely covers California's tax take.

Fortunately, HGTV does provide an escape hatch by offering $1,050,000 in cash in lieu of taking possession of the home. You also get to keep the $250,000 in cash and the $77,000 Denali for a total escape pot of $1,377,000. If the winner opts for this choice, they will take home $753,462 free-and-clear after paying federal and state income taxes of $623,538. These numbers kind of makes you wonder who the real winner of this contest is--the contestant or the government?

My suggestion would be take this money and run. One could outright buy a very, very nice home with the cash and have zero debt. If you have had your fill of paying taxes, you could buy a house in the handful of America’s tax havens left (all in New Hampshire) where there are no state and local individual income taxes, no state or local sales taxes and very low (in some case no) local property taxes.

Or, if New Hampshire is not your style, you can check out the tax burdens in other states with our unique tax burden app which shows tax burdens by state, by type and over time. Also, the contest for the 2014 diy Lakeside Blog Cabin will be announced soon and I will estimate the tax bill of winning that home as well . . . stay tuned. For those who might be interested, here is what California's tax burden looks like.



Category: Tax Burdens

J. Scott Moody

J. Scott Moody has over 17 years as a public policy economist with a specialty in tax policy and has over 170 publications. He has worked for numerous national and state-based think tanks such as State Budget Solutions, Tax Foundation, Heritage Foundation, and The Maine Heritage Policy Center.



Click Here to Calculate
Your Income Tax!


Check Out Our Unique Apps:

Government Workforce App

Tax Burden App

Cost of Living App

Federal Taxes and Cost of Living App

Check Out All Posts For Your State:





























New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota





Rhode Island

South Carolina

South Dakota







West Virginia



Category List

Tag List

California (6)
Buckeye Institute (1)
Vermont (3)
Wisconsin (2)
James Buchanan (1)
Maine (3)
Property Taxes (1)
Federal Debt (2)
Obamacare (1)
Mercatus Center (1)
HGTV 2014 Dream Home (1)
Minnesota (2)
Daniel DiSalvo (1)
Migration (2)
Hoover Institution (1)
Lake Tahoe California (1)
Progressive Individual Income Tax (1)
Individual Income Tax Burden (3)
Social Security Reform (1)
Kansas (2)
Veronique de Rugy (1)
Tax Exporting (4)
Public Choice Economics (1)
Manufacturing (1)
New Jersey (2)
Pennsylvania (2) (1)
Wyoming (3)
Schaffer's Mill (1)
Oklahoma Council of Public Affairs (1)
Student Loans (1)
Property Tax (3)
Local Business Taxes (1)
Federal Income Tax Burden (3)
Louisiana (2)
Robert Hall (1)
Temporary Assistance for Needy Families (1)
Oregon (2)
Flat Tax (1)
Act 60 (1)
Arizona (2)
Winter Haven Florida (1)
Business Taxes (1)
Municipal Individual Income Tax (1)
Internal Revenue Service (1)
Employment (1)
Government Employment (48)
Individual Income Tax Calculator (2)
Permanent Wyoming Mineral Trust Fund (1)
Johnny Manziel (1)
Coal Severance Tax Trust Fund (1)
Fix SS Now (1)
Local Option Sales Tax (1)
Federal Income Tax Liability (2)
HGTV 2014 Urban Oasis (1)
Rick Palacios Jr. (1)
2013 Migration Patterns (1)
Atlas Van Lines (1)
New Hampshire (4) (1)
diy 2014 Blog Cabin (2)
Ohio (5)
Census Bureau (2)
North Dakota (4)
2014 Blog Cabin (1)
Maryland (2)
Idaho (2)
U.S. Census Bureau (2)
New Mexico (2)
John Mauldin (1)
Proposition 2 1/2 (1)
Illinois (3)
State Business Taxes (1)
Law of Unintended Consequences (1)
2014 HGTV Dream Home (1)
Sales Tax Pyramiding (1)
Jock Tax (1)
Massachusetts (2)
Connecticut (3)
TANF (1)
Transparent Nevada (1)
Free-Stater (2)
Oklahoma (2)
California Income Tax Burden (1)
Fiscal Cliff (2)
Healthcare (1)
Utah (2)
Alaska (4)
IRS (1)
Local Individual Income Tax (1)
Michigan (2)
Tax Collections (1)
Unincorporated Business Tax (1)
Plausible Baseline (1)
Social Security (1)
AFDC (1)
New York (3)
Council on State Taxation (1)
Public Assistance (1)
John Burns (1)
General Assistance (1)
Tax Foundation (13)
Concord Coalition (1)
Ali Wolf (1)
Marginal Tax Rates (1)
Tennessee (2)
Washington, D.C. (1)
COST (1)
Federal Budget Deficit (2)
Montana (2)
Tax Burdens (53)
Government Benefits (49)
Kentucky (2)
Business Enterprise Tax (1)
Severance Tax Permanent Fund (1)
HGTV 2014 Smart Home (1)
Delaware (2)
Joe The Economist (1)
Hydraulic Fracturing (2)
Sales Tax (1)
Government Compensation (48)
Colorado (2)
Florida (3)
Individual Income Tax Cuts (1)
Severance Taxes (4)
Taxes Matter (2)
Indiana (3)
Texas (3)
Tax Reform (2)
Alabama (2)
Missouri (2)
Income Tax (1)
diy network (2)
Business Flat Tax (1)
South Carolina (2)
Mississippi (2)
ALEC (1)
Cross-Border Shopping (3)
Proposition 13 (2)
Alvin Rabushka (1)
Gordon Tullock (1)
Gross Receipts Tax (3)
Government Workforce (51)
Rhode Island (2)
West Virginia (2)
Virginia (2)
Wyoming Taxpayers Association (1)
Federal Interest Payments (2)
Illinois Policy Institute (1)
Bankruptcy (1)
Manhattan Institute for Public Policy Research (1)
Welfare Reform (1)
Nebraska (2)
Alaska Policy Forum (1)
North Carolina (3)
Know Your Rates (1)
Government Wages and Salaries (48)
Insurance Premiums (1)
Tax Cuts (1)
Iowa (2)
Georgia (4)
Congressional Budget Office (1)
South Dakota (2)
Tax Havens (1)
Arkansas (2)
Nevada (2)
Aid to Families with Dependent Children (1)
Hawaii (3)
Washington (2)
Interest Rates (2)
Dr. Arthur Woolf (1)

Tag Cloud

California Income Tax BurdenMassachusettsConnecticutAli WolfHoover InstitutionLocal Business TaxesRobert HallGross Receipts TaxObamacareMunicipal Individual Income TaxHydraulic FracturingFederal Debt2014 HGTV Dream HomeSeverance TaxesRick Palacios Jr.ArizonaCensus BureauSales TaxSouth CarolinaAFDCCouncil on State TaxationMaineHGTV 2014 Dream HomeCaliforniaTax ExportingState Business TaxesTANFLaw of Unintended ConsequencesNew JerseyGovernment BenefitsJohn BurnsKnow Your RatesHGTV 2014 Smart HomeAct 60U.S. Census BureauMontanaNew MexicoHGTV 2014 Urban OasisSocial Security ReformStudent LoansMinnesotaProgressive Individual Income TaxHealthcareGovernment WorkforceAlaskaJohnny ManzielIndividual Income Tax CutsIRSTax ReformVeronique de RugyProposition 2 1/2James BuchananPermanent Wyoming Mineral Trust FundNew YorkWashingtonBankruptcyOregonFiscal CliffPublic Choice EconomicsTax-Rates.comFloridaNevadaIncome TaxMissouriColoradoWyomingWinter Haven FloridaMarylandLouisianaAlvin RabushkaInterest RatesTax HavensVermontJoe The EconomistALECMichiganDelawareTax BurdensIndividual Income Tax CalculatorFederal Interest PaymentsUtahManufacturingIndividual Income Tax BurdenJohn MauldinIllinois Policy InstituteTax FoundationFederal Income Tax LiabilityGeorgiaPublic AssistanceBusiness TaxesFree-StaterTaxes MatterGordon TullockInsurance PremiumsIdahoRealEstateConsulting.comTax CutsSales Tax PyramidingWest Virginia2013 Migration PatternsConcord CoalitionAlabamaFederal Budget DeficitMississippiBuckeye InstituteGovernment CompensationTexasLocal Individual Income TaxCross-Border ShoppingIowaKansasTax CollectionsTennesseeProperty TaxIllinoisMigrationBusiness Enterprise TaxNorth DakotaVirginiaDaniel DiSalvoDr. Arthur WoolfLocal Option Sales TaxAlaska Policy ForumProperty TaxesWelfare ReformWyoming Taxpayers AssociationGeneral AssistanceKentuckySouth DakotaOhioNebraskaNorth CarolinaGovernment Wages and SalariesMarginal Tax RatesHawaiiJock TaxManhattan Institute for Public Policy ResearchCongressional Budget OfficeFederal Income Tax BurdenIndianaRhode IslandSeverance Tax Permanent FundInternal Revenue Service2014 Blog CabinProposition 13New HampshireWashington, D.C.Flat Taxdiy networkAid to Families with Dependent ChildrenCOSTTemporary Assistance for Needy FamiliesUnincorporated Business TaxSocial SecurityBusiness Flat TaxPennsylvaniaSchaffer's MillArkansasOklahoma Council of Public Affairsdiy 2014 Blog CabinGovernment EmploymentAtlas Van LinesMercatus CenterOklahomaTransparent NevadaEmploymentLake Tahoe CaliforniaCoal Severance Tax Trust FundFix SS NowPlausible BaselineWisconsin


C O N T A C T   U S  -  C L I C K   H E R E