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

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

Tag Cloud

Census BureauState Business TaxesMontanaStudent LoansOklahomaMississippiManhattan Institute for Public Policy ResearchCouncil on State TaxationAlaska Policy ForumWelfare ReformGordon TullockIowaHydraulic FracturingGross Receipts TaxPennsylvaniaPlausible BaselineColoradoObamacare Tax PenaltiesFederal DebtLocal Option Sales TaxFederal Income Tax BurdenTreasury Inspector General for Tax AdministrationConcord CoalitionFix SS NowU.S. Census BureauCongressional Budget OfficeSocial Security ReformTransparent NevadaIdahoBusiness Flat TaxArizonaWest VirginiaUnincorporated Business TaxOregonJoe The EconomistKnow Your RatesDelawareGovernment CompensationBusiness TaxesLaw of Unintended ConsequencesHealthcareNevadaMinnesotaTax BurdensNational Directory of New Hires and Employment DataIndividual Income Tax BurdenIndividual Income Tax CalculatorTemporary Assistance for Needy FamiliesVirginiaCOSTProperty TaxEarned Income Tax CreditProgressive Individual Income TaxFloridaIndianaTennesseeFederal Income Tax LiabilityJames BuchananRick Palacios Jr.Sales TaxTax FoundationMaineSocial SecurityDr. Arthur WoolfBuckeye InstituteWyoming Taxpayers AssociationTIGTAAct 60Insurance PremiumsVermontGovernment EmploymentAlabamaACTCBusiness Enterprise TaxJock TaxTax FraudPublic Choice EconomicsMaryland2014 Blog CabinUtahMercatus CenterRefundable Earned Income Tax CreditAli WolfNebraskaNorth DakotaIRS ScandalCaliforniaLouisianaMarginal Tax RatesSeverance TaxesHoover InstitutionHawaiiTax HavensIRSFree-StaterTexasGeorgiaFlat TaxConnecticutLake Tahoe Californiadiy networkJohnny ManzielIncome Tax2014 HGTV Dream HomeKentuckyRobert HallFederal Budget DeficitTax CollectionsObamacareAtlas Van LinesJohn MauldinHGTV 2014 Dream HomeRealEstateConsulting.comGovernment WorkforceWisconsinPermanent Wyoming Mineral Trust Funddiy 2014 Blog CabinPublic AssistanceRhode IslandGeneral AssistanceTANFFiscal CliffMichiganMunicipal Individual Income TaxNew YorkProposition 2 1/2AlaskaCross-Border ShoppingArkansasInternal Revenue ServiceMissouriCoal Severance Tax Trust FundSouth CarolinaGovernment BenefitsTax ErrorsEITCProperty TaxesSouth DakotaEmploymentCalifornia Income Tax BurdenKansasTaxes MatterInterest RatesGovernment Wages and SalariesNew MexicoHGTV 2014 Urban OasisAFDCHGTV 2014 Smart HomeWinter Haven FloridaOklahoma Council of Public AffairsOhioJohn BurnsAlvin RabushkaNew JerseyWashingtonDaniel DiSalvoLocal Individual Income TaxTax-Rates.comAdditional Child Tax CreditSchaffer's MillSales Tax PyramidingIllinois Policy Institute2013 Migration PatternsAid to Families with Dependent ChildrenTax ReformMigrationWashington, D.C.WyomingTax ExportingProposition 13MassachusettsFederal Interest PaymentsLocal Business TaxesManufacturingIllinoisALECIndividual Income Tax CutsVeronique de RugySeverance Tax Permanent FundNew HampshireTax CutsBankruptcyNorth Carolina


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