2006-10-21 13:22:28 · 4 answers · asked by ldavis76 1 in Business & Finance ➔ Taxes ➔ United States
The home is classified as a "category 2 prize". Section 61 of the Code makes them entirely includible in the gross income of the recipient.
You will pay Federal tax depending on the fair market value of the home. It the value of the home will be included in your Gross Income for the year of receipt. The tax due will depend on your personal income and deductions for that year.
You will pay State tax, depending on what state the home is in. The same rules will apply of the value of the home being included in your "Gross Income".
And you will pay personal property taxes for the county the home is in.
2006-10-21 18:12:33 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Check to see if you have a walk in Internal Revenue Service office in your area and stop by and ask or contact a Tax Advisor, they should be able to answer that question for you. It should be based upon the fair market value of the dream home but I can't tell you for sure. Good luck!
2006-10-21 14:32:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
That would all depend on your personal filing status and the state you live in. Check your local dept of revenue web page for the answer
2006-10-21 13:43:13 · answer #3 · answered by my space 3 · 0⤊ 0⤋
tax is charge on the value of the home
2006-10-21 13:30:32 · answer #4 · answered by waiting for baby 6 · 0⤊ 0⤋