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Is it true those poor people that get new homes on tv have to pay a tax or lose the house?

Like that show on TLC where they give a family in need a brand new house in place of their old? Do they lose their house because they have to pay a tax, and that it can't be donated because its an income? Thats what my husband says...

 
Anonymous

Asked by Anonymous at 11:26 PM on May. 19, 2010 in Just for Fun

This question is closed.
Answers (9)
  • Yep, your husband is correct. They have to pay the taxes and as other have pointed out it's similar to winning the lottery. A similar thing happen when Oprah gave everyone in her audience a new car. So many of them could not afford the taxes on the cars that they lost them. Nothing in this world is FREE; EVERYTHING has a price!
    SAHMinIL2

    Answer by SAHMinIL2 at 11:41 PM on May. 19, 2010

  • They have to pay yearly land tax and also a "gift tax", if you will. It's a tax that everyone has to pay on winnings, like the lottery. I don't think they consider it an income, because they aren't profiting any money off of it. I don't know about donating the home or not. However, in those scenarios as well they still have to pay a mortgage, unless a company decides to donate money to pay their mortgage off.
    JazzlikeMraz

    Answer by JazzlikeMraz at 11:30 PM on May. 19, 2010

  • I know that lots of people that got a house from Extreme Makeover got their house foreclosed on because it was so over the top expensive they couldn't afford to pay. So I'm thinking the answer to your question is yes.
    Anonymous

    Answer by Anonymous at 11:30 PM on May. 19, 2010

  • Thats just aweful! The world these days! People can't just do something nice for other people without it screwing them over? I was hoping my husband was wrong....
    Anonymous

    Answer by Anonymous at 11:35 PM on May. 19, 2010

  • I've heard that Extreme Makeover pay for the taxes but I'm not sure if that is yearly or just the initial taxes. The people who are losing their houses to foreclosure is because they tapped into their instant equity they have to fund projects or new businesses but never actually got them off the ground.
    mommyerin02

    Answer by mommyerin02 at 11:40 PM on May. 19, 2010

  • When you own your own home, you pay an annual property tax.  The higher the value of your home, the more tax you pay.

    beeky

    Answer by beeky at 11:40 PM on May. 19, 2010

  • They have to pay yearly income taxes on it, they go bankrupt because the taxes go up so much not to mention the cost of maintaining and climate controlling a house 5xs as big as they're use to.
    Anonymous

    Answer by Anonymous at 11:57 PM on May. 19, 2010

  • Forget the taxes for a moment and imagine the shock these people must have when they receive their first utility bills! Most go from a small house under 1000 sq. ft to these HUGE mansions that probably cost over $1000 just in electricity a month. I wouldn't own a house over 1500 sq. ft. They look nice but dear lord, who needs all that space and expense? Not I!
    LittleWeloosMom

    Answer by LittleWeloosMom at 3:15 AM on May. 20, 2010

  • They'd have to at least pay their annual property tax.
    reux

    Answer by reux at 12:40 PM on May. 20, 2010

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