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


2014_HGTV_Dream_Home_in_Lake_Tahoe_Colorado.jpg


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.


California_Tax_Burden_1950_to_2011.jpg

 



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.


Have all of our posts at Key Policy Data delivered to your inbox!

Enter your email address:

Delivered by FeedBurner

 


 

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:

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Have all of our posts at Key Policy Data delivered to your inbox!

Enter your email address:

Delivered by FeedBurner

Category List


Tag List

Lake Tahoe California (1)
Louisiana (2)
Idaho (1)
Winter Haven Florida (1)
Government Compensation (43)
Tax-Rates.com (1)
Free-Stater (1)
Proposition 13 (2)
Social Security Reform (1)
South Carolina (2)
Employment (1)
North Carolina (3)
Alabama (2)
Buckeye Institute (1)
Alaska (4)
Individual Income Tax Calculator (1)
Wyoming Taxpayers Association (1)
2014 HGTV Dream Home (1)
Manufacturing (1)
Act 60 (1)
James Buchanan (1)
Washington, D.C. (1)
Obamacare (1)
Cross-Border Shopping (3)
Oklahoma Council of Public Affairs (1)
Connecticut (3)
Kansas (2)
Property Taxes (1)
HGTV 2014 Smart Home (1)
Maine (1)
Gross Receipts Tax (3)
Hydraulic Fracturing (2)
HGTV 2014 Dream Home (1)
California Income Tax Burden (1)
Tax Exporting (4)
Arkansas (2)
Wyoming (3)
Social Security (1)
Manhattan Institute for Public Policy Research (1)
Gordon Tullock (1)
South Dakota (2)
Maryland (2)
Local Individual Income Tax (1)
Healthcare (1)
Tax Foundation (13)
Missouri (2)
Schaffer's Mill (1)
Virginia (2)
Rhode Island (2)
Government Employment (43)
Income Tax (1)
Daniel DiSalvo (1)
Nebraska (2)
Taxes Matter (2)
West Virginia (2)
Oklahoma (2)
Mississippi (1)
Public Choice Economics (1)
Wisconsin (2)
Arizona (1)
Delaware (2)
Ohio (5)
New York (3)
Illinois (2)
Jock Tax (1)
Nevada (2)
diy network (1)
Progressive Individual Income Tax (1)
Federal Income Tax Burden (2)
U.S. Census Bureau (2)
Colorado (2)
Montana (2)
Oregon (2)
New Mexico (2)
Massachusetts (2)
Texas (3)
Tax Reform (2)
Hawaii (3)
Unincorporated Business Tax (1)
Tax Havens (1)
Michigan (2)
Coal Severance Tax Trust Fund (1)
Severance Taxes (4)
Transparent Nevada (1)
Local Option Sales Tax (1)
diy 2014 Blog Cabin (1)
Dr. Arthur Woolf (1)
Federal Income Tax Liability (1)
Atlas Van Lines (1)
Marginal Tax Rates (1)
Proposition 2 1/2 (1)
Joe The Economist (1)
North Dakota (4)
Tennessee (2)
Tax Collections (1)
Tax Cuts (1)
Know Your Rates (1)
Johnny Manziel (1)
Severance Tax Permanent Fund (1)
Migration (1)
Property Tax (3)
Florida (2)
Alaska Policy Forum (1)
Iowa (2)
Permanent Wyoming Mineral Trust Fund (1)
Vermont (2)
Pennsylvania (2)
Fix SS Now (1)
Municipal Individual Income Tax (1)
Government Benefits (44)
2014 Blog Cabin (1)
Utah (2)
Government Workforce (46)
Government Wages and Salaries (43)
New Hampshire (3)
ALEC (1)
Washington (2)
Tax Burdens (53)
Georgia (3)
New Jersey (2)
Kentucky (1)
Indiana (3)
Individual Income Tax Cuts (1)
2013 Migration Patterns (1)
Sales Tax (1)
Minnesota (2)
Insurance Premiums (1)
California (6)
Individual Income Tax Burden (2)

Tag Cloud

VermontGovernment WorkforceHGTV 2014 Dream HomeFloridaLocal Option Sales TaxFix SS NowIllinoisProperty TaxesJock Taxdiy 2014 Blog CabinMissouriDelawareTaxes MatterTransparent NevadaAct 60New MexicoOregonHealthcareTax HavensJames BuchananNebraskaPermanent Wyoming Mineral Trust FundWinter Haven FloridaMontanaAlabamaOklahoma Council of Public AffairsOhioCoal Severance Tax Trust FundLake Tahoe CaliforniaManhattan Institute for Public Policy ResearchMaineIndividual Income Tax CalculatorIdahoMississippiAlaskaWyomingConnecticutUnincorporated Business TaxGovernment CompensationFree-StaterWashington, D.C.Hydraulic FracturingVirginiaMichiganJohnny ManzielFederal Income Tax Burden2014 Blog CabinIowaProposition 13Gordon TullockKansasdiy networkLouisianaRhode IslandMarylandIncome TaxTax ReformJoe The EconomistEmploymentGovernment Wages and SalariesNorth CarolinaALECColoradoIndividual Income Tax CutsGross Receipts TaxTax-Rates.comIndianaMassachusettsNew YorkBuckeye InstituteObamacareTax ExportingSeverance Tax Permanent FundMarginal Tax RatesSouth Dakota2013 Migration Patterns2014 HGTV Dream HomeKnow Your RatesAlaska Policy ForumWashingtonKentuckyNew JerseyWest VirginiaArizonaNevadaNew HampshireSocial SecurityDr. Arthur WoolfGovernment BenefitsTax CutsTexasHawaiiSocial Security ReformIndividual Income Tax BurdenPublic Choice EconomicsMinnesotaHGTV 2014 Smart HomeSeverance TaxesCross-Border ShoppingTax FoundationLocal Individual Income TaxDaniel DiSalvoU.S. Census BureauPennsylvaniaMigrationWisconsinGovernment EmploymentMunicipal Individual Income TaxSales TaxSouth CarolinaInsurance PremiumsCalifornia Income Tax BurdenFederal Income Tax LiabilityUtahCaliforniaProposition 2 1/2GeorgiaProgressive Individual Income TaxWyoming Taxpayers AssociationManufacturingAtlas Van LinesTax CollectionsOklahomaArkansasTennesseeSchaffer's MillNorth DakotaTax BurdensProperty Tax


Archive

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