The homes that are built on Extreme Make-over are beautiful. After everything is finished who pays the taxes on the house and the property taxes there after? The house is after all a gift to these deserving people.
2007-02-19 02:55:02 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The people must pay the tax on the fair market value of the home and anything else of value that they receive.
Unfortunately it cannot be classified as a gift to the recipients. There is a commercial motive on the part of the show -- the advertising dollars that such a popular show brings in -- and that precludes treating the home "makeovers" as a gift.
The producers of the show try to provide additional funds to defray the taxes due, though that money is taxable as ordinary income as well.
2007-02-19 04:18:05 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
The people do- I think maybe their loan stays the same but their taxes for a larger home would be different. I noticed on some shows the builder paid the morgage for a year and on another the taxes--I'm sure all of it is figured with them beforehand in the [planning- you'd have to. Otherwise it would not be the help it is, if they couldn't pay the bills.
2007-02-19 02:59:46 · answer #2 · answered by ARTmom 7 · 0⤊ 1⤋
This is an interesting question. I don't know for sure, but my best guess is that taxes are the responsibility of the home owner. I don't recall seeing any mention in the closing credits on the show, but that is the way it is handled on most of the "give-away" shows.
2007-02-19 03:00:15 · answer #3 · answered by Beau R 7 · 0⤊ 0⤋
I know that sometimes the program will help the family pay the taxes, im not sure for how long.
but it would still be the owners responciblity to pay
2007-02-19 02:58:54 · answer #4 · answered by Anonymous · 0⤊ 1⤋
those people have to pay the taxes on it. the TV show wont pay for that for the rest of their lives.
2007-02-19 03:00:37 · answer #5 · answered by colera667 5 · 0⤊ 0⤋