It’s that time of year again, the 20th annual HGTV Dream Home 2016 Sweepstakes began December 29th. As the sponsor of this promotion has recognized, winning a mansion could put you in the dog house when you are socked with a hefty tax bill. I’ve written about this issue of the tax consequences of giving away expensive prizes in an article published in the Connecticut Post.
To avoid cooking Ramen noodles and mac and cheese on your brand-new Thermador® 36 inch Professional Series Pro Harmony standard depth dual fuel range (i.e., “oven”), you have the option of taking $900,000 instead so that your dream home doesn’t become a financial nightmare. (more…)