If the DHW immediately sold the DH for $1,900,000 net of selling costs, they would still have after tax cash of $1,200,000 ($1,900,000 sale proceeds + $250,000 cash award - $950,000 in taxes) plus the new GMC. Taxes, mostly. Again this year, I am summarizing the income tax aspects of the Dream Home that keep coming up in various forms. Listed for $599,000, the three-bedroom residence on Essex Street in Portland, ME, features two stories of bold colors and high design. RELATED: How Does The Property Brothers' Net Worth Compare To Other HGTV Stars? how much HGTV star David Bromstad's net worth has expanded since starting to work at the channel, he school teacher would owe over $900,000 in taxes alone, Inside Shakira's Multi-Million Dollar Tax Evasion Case, she knew all the right questions to ask prior to deciding, The Truth About Connor Trotts Complicated Dating Life After Love Island. A PURCHASE WILL NOT INCREASE YOUR CHANCE OF WINNING. 2. However, if you take the cash option, which in the example above is just $1.262 million, the feds would ding you for slightly less than $500,000. We still dont know if Beverly decided to accept the home or take the cash prize, but if she were to have accepted the 2.3 Million package, the school teacher would owe over $900,000 in taxes alone. Noncash prizes: The IRS considers noncash prizes as income you should report as well. So three months after winning the Sonoma, Calif., manse, the winner sold it for $2.2 million. would not qualify. How do HGTV Dream Home winners pay the taxes? Maybe if it burned down first. The home itself is a two-story, modern mountain cabin with three bedrooms and three-and-a-half bathrooms spread across 3,090 square feet. In fact, he was still trying to win again! How do I get HGTV to come to my house? Winning a free house sounds like the best thing that could happen. ET on Friday, December 23, 2022 through 5 p.m. VIABLE WAYS TO FUND THE INCOME TAXQ: What are some of the ways the DHW could fund the income taxes?A: Fund it out of their existing assets. He is an award-winning journalist who worked at two major Washington, D.C. newspapers and is a past president of the National Association of Real Estate Editors. Wayfair is one of the sponsors of this year's HGTV Dream Home sweepstakes Sweepstakes Official Rules: US, 21+. The 2022 HGTV Dream Home is in Warren. Enter twice daily, once on FoodNetwork.com and once on HGTV.com, for your chance to win HGTV Dream Home 2022, a grand-prize package valued at over $2.4 million. You have likely increased the federal income tax liability because taxable trusts are taxed at the maximum tax rate (35%) on all income over $10,050 whereas a married filing joint doesnt reach the maximum tax rate until their income exceeds $336,000. The designer of the home was Brian Patrick Flynn, the build manager was Dylan Eastman, and the builder was Big Country Built. As of the time of writing, Ben Napier is neither a Republican nor Democrat. If the DH was not your principal residence, then the gain would be taxed as LT capital gain, explained above. How do I avoid paying taxes on prize winnings? So if you're planning on boosting your number of entries dramatically, you're talking about $0.60 or more for each additional chance. They will file a lien and then start court proceedings. Lots of people working in tech got burned by this in the dotcom crash. Earnings in the U.S. are taxed regardless of citizenship. 12. Using the DH as a vacation home, rental property, etc. An All-New Jeep Grand Cherokee 4xe. All federal, state, and local taxes on the Grand Prize are Grand Prize Winners responsibility. The gain (loss) is the bases between the initial appraised value that you paid the initial taxes on and the sales price. The participation started on 28 December 2021 and ended on 17 February 2022. Viewers can tune-in to the one-hour special HGTV Dream Home 2022 on Saturday, January 1 at 8 p.m. HGTV Dream Home taxes wease 14 years ago I have a question regarding taxes that will be charged to the HGTV Dream Home winner. I Wrecked My House you might see a grimy old kitchen and in what feels like the snap of a finger it transforms into a beautiful new, crisp, clean, Pinterest-worthy masterpiece, she wrote. Consider lump-sum vs. annuity payments. While the company surely wants people to accept the house, they definitely don't go to sleep feeling bad after handing off those big checks to the winners. 25. 26. Do you have to claim prize money on taxes? But after taking out a mortgage on the place to pay her taxes, according to Country Living magazine, she used it only as a vacation property. The 2019 winner, Beverly Fulkerson of Osgood, Ind., won a 3,650-square-foot Montana mountain retreat. What did Property Brothers get in trouble for? 32. 1. It seems Karey and her family made their way to Vermont and are currently living in the $2.4 million home. The couple ended up with a $1.2 million cash prize rather than the $1.4 Million property in Merritt Island, Florida. Unfortunately, if you sell for less that it was initially appraised for, you will not able to take the loss or recoup the taxes that you overpaid, at least as far as I know ( in regards to recouping tax overpay, you cannot take real estate sales as loss). After several showings over the last week, bids are in. Let me rephrase this. Each taxpayer can transfer up to $1 M during their lifetimes in addition to $12,000 to each recipient each year. Includes a grand wagoneer and 250k. Some restrictions may apply. ET. I sell it for 2 million. ?. Several types of lenders that you may wish to consider are: Private lenders: Banks, credit unions and other financial institutions. This would be considered a "jumbo loan" with new issues to resolve. Without advertising income, we can't keep making this site awesome for you. Tara is a seasoned freelance journalist based out of Austin, Texas. Uncle Sam makes it a little difficult to take ownership, Laura Martin told Country Living. Do you have to pay to be on an HGTV show? Has a Winner been chosen for the HGTV Dream Home 2022? This solution has significant practical problems for this type of property. If the winner decides to sell it and not live in it because they can't come up with the $800,000 in taxes, wouldn't they be taxed again on the sale proceeds of the home since it is not their primary residence? HGTV DREAM HOME GIVEAWAY 2023OFFICIAL RULES NO PURCHASE NECESSARY TO ENTER OR WIN. Additionally, bankruptcy does not alleviate income tax liabilities. For 25 years, the HGTV Dream Home Giveaway has invited viewers to enter their lottery. So, in essence, you would still have to pay income tax on 80% of the DH winnings. Do clients on HGTV home town get to keep the furniture? WATCH THIS: The Totally Modern Way 'Home Town' Stars Ben & Erin Napier Got Discovered Based on an analysis by Vocativ, the grand prize typically comes with a federal income tax bill of nearly. How do I avoid paying taxes on prize winnings? In addition to the fully furnished house, the next grand prize winner will also receive $50,000 from LendingTree. There are state and local income taxes, as well. The sales tax on the 2009 house was $500,000, and the property tax was $25,000. Last month, HGTV announced that Jeff Yanes of Kyle, Texas was the winner of the 2021 Dream Home Sweepstakes. All federal, state, and local taxes on the Grand Prize are Grand Prize Winner's responsibility. 3. How Alana Thompson's Life Completely Changed After Here Comes Honey Boo Boo Ended. Non cash gifts to public charities is limited to 30%. Presumably, on the day you win, you will have a federal (maybe state) income tax liability for the value of the property that day - if you sell it the next day, next week, or next year, your profit would be the amount you sold it for (minus expenses) minus the your basis in the property. ET on HGTV as well as on discovery+ and HGTV GO beginning Saturday, October. ET on Thursday, February 17, 2022 Eligible fans can enter for a chance to win twice per. HGTV decorator Brian Patrick Flynn, who helmed the house's interior design, spoke with PEOPLE about its unique style and one-of-a-kind features. COMBINED STATE and FEDERAL INCOME TAXESQ: So what is the total State and Federal Income Tax applicable to the DH?A: Approximately $949,500 ($770,000 Federal plus $179,500 NC). Since the DH is located in NC, you will be subject to NC income tax on the ARV, whether you ever move there or not. As Roth revealed in her entry, the budgets are in fact real. Speaking of inside the home, many viewers swoon over the final layouts. HGTV's newest home giveaway is finally here! By Kelly Corbett Published: May 7, 2021. Santo said the winner also has to pay income tax. Do I have to pay taxes if I flip a house? The publication also notes that when someone wins the home, it then counts as income, which leads to high taxes. (Video) The Real Reason People Regret Winning The HGTV Dream Home. Finally, dream home library! Do I have to pay taxes if I flip a house? Not when HGTV transfers the DH to the DHW. Total ARV of the Grand Prize is $925,120 if Grand Prize Winner selects the Cash Option in lieu of the HGTV Dream Home 2023. How much are taxes on HGTV Dream Home 2022? HGTV also offers a luxury apartment giveaway in the Urban Oasis Sweepstakes. According to Zillow.com, the house was purchased last December for $275,000, the homeowner paid nearly $4,400 in property taxes last year, and its most recent tax-assessed value was $188,200. They are required to distribute at least 5% of the value of their assets annually. They decided to go with the cash prize, and the property was sold back to the developers. 37. While HGTV doesn't specifically address payment in their application, they do note that homeowners now must have a $100,000 renovation budget (this requirement was previously $50,000 and then $75,000). Emily Muniz is a veteran HGTV viewer, so when she won 2018s Dream Home contest, she knew all the right questions to ask prior to deciding between the cash or the lavish pacific northwest home that was being offered to her. How much taxes do you have to pay on the HGTV Dream Home? GIFT TAXQ: Will there be a gift tax to the DHW?A: No. Taxed on the FMV of the winnings and then taxed on the gain on the sale of the home? The IRS has the legal right to follow the asset. Valued at over $2.8 million, the fully . Q: What is the state income tax for NC?A: For Married Filing Jointly, NC income tax is $14,500 for the first $200,000 and 8.25% above that. There is no requirement for them to do so. New problem, as the donor, the DHW is a "disqualified person" and cannot rent the DH from the CLT. Earnest Money Deposits Questions and Answers. (Video) How much do you pay in taxes if you win the HGTV Dream Home? Your average tax rate is 32.94% and your marginal tax rate is 37%. Do the Napiers live in Laurel Mississippi? According to Cheat Sheet, people have to pay property taxes, and that could be thousands of dollars. Grand Prize Winner must show proof of insurance a valid U.S. drivers license prior to taking possession of the vehicle. The 2008 winner would have had to pay sales tax of roughly $700,000 plus $20,000 more annually for property taxes, so she sold her new Florida Keys house for $1.65 million. TRUSTSQ: Can the DHW transfer the DH to a trust and avoid the income taxes?A: No. As long as you pay as much estimated tax and withholding during 2006 as your taxes were in 2005 there will be no penalties for underpayment prior to April 16, 2007. By clicking Accept I agree to this, as further described in the Houzz Cookie Policy. Winning is dependent on the number of entries received. Q: What if the DHW sells the DH immediately?A: They will still owe the $950,000 income tax (federal and state) on the ARV. I have a question regarding taxes that will be charged to the HGTV Dream Home winner. See every stunning space from HGTV Dream Home 2022, a grand mountain modern escape packed with high-end design and located in Warren, Vermont. According to a report from CNBC, 2019 winner Beverly Fulkerson won a $2.3 million prize package that included a "Dream Home" in Montana. HGTV estimates the whole package is worth more than $1.2million. The. What percentage does the IRS take from winnings? This year's home was a cozy, costal escape in Hilton Head, South Carolina. We're the first and only Web site to offer a new alternative for taxes when winning sweepstakes. What if the house drops in value to $1M a few months after the winner accepted the prize?=> NIGHTMARE! 51. The winner of . NC taxes non-residents on income from any source in NC. Muniz and her husband met with a financial advisor who suggested the financial upkeep might be a lot for the two to handle. But there was a bright spot the winner donated the contents of the home, valued at $187,000, to charity. 39. Nice little windfall. The lucky winner of this season's giveaway will win a modern, fully-furnished, two-story three-bedroom house with a modern studio-styled garage and a cool patio lounge area for outdoor entertaining. The 2011 winners tried to use their new Vermont ski-in, ski-out lodge as a vacation home but only managed to use it five times before deciding to sell it, Tedesco reports. When can you enter to win the HGTV Dream Home? How many bedrooms and bathrooms are in the HGTV Dream Home? Finally, last years HGTV Dream Home winner took home a 3,500-square-foot house valued at more than $2 million in Pittsburgh, Pa. Theres no word yet on how the last two winners are faring, but the moral of this story is still clear: unless winners of these types of giveaways plan to sell the places they already own and move, they probably cant afford the hit. Has a Winner been chosen for the HGTV Dream Home 2022? Do you have to claim prize money on taxes? If the DHW borrowed just the balance of the income tax $700,000 ($770,000 federal tax +$179,500 state tax - $250,000 cash award) then their monthly mortgage would easily be $3,003 to $4,424 assuming rates had not increased. Say it's $700,000. Sponsor: Discovery Communications, LLC, 230 Park Avenue South, New York, New York 10003. Parsing words will not change this. This is why the ARV is moot if the DHW sells the DH in 2006 it is all taxed at the same tax rates. Assuming that DHW wanted to move into the DH, they could use the $250,000 cash and $700,000 of the equity in their existing home (if they have it) to pay the income taxes. Gonna go with "a lot" on that. Trademark Attribution: The HGTV DREAM HOME GIVEAWAY, HGTV, FOOD NETWORK, JEEP, GRAND CHEROKEE, and 4XE trademarks are trademarks of their respective owners. If the NC state income tax is greater than the income tax in their home state, then they will pay only the difference to NC. Most people can't afford to keep the HGTV Dream Home when they win. Typically, house flipping is not considered to be passive investing by the IRS, and as active income, the investor will need to pay normal income taxes on their net profits within the financial year. It sounds like the perfect prize, and millions of past entrants no doubt have thought the same. They used $100,000 of their after tax dollars and effectively reduced their winnings by that amount which is counter productive. ET on February 16, 2023. Youd also owe state income taxes, but there wouldnt by any property taxes. IMHO, this message needs to be bumped up every day. Considering just how massive and fully loaded these houses are, that can come out to millions of dollars in taxes alone for the winning family to pay to claim the prize as their own. Use it as a revenue source to generate the cash flow to pay the taxes or a (tax) loan payment, such a rental, etc. In April 2007, they will owe federal and state income taxes of approximately $950,000. For simplicity purposes, lets round the basis to $1,900,000 as I anticipate that the ARV will increase slightly by the time of transfer. I win the house and I pay the tax on the winningswhatever that is. The specifics of all aforementioned elements of the Grand Prize in the Promotion shall be solely determined by Sponsor. $100,000 from Ally. It's meant to be a home away from home for the whole family a place where the kids can run around outside and play, Erin tells Southern Living. Karey Wolstenholm was named the winner of the 2022 HGTV Dream Home located in Warren, Vermont. While the homeowner ultimately pays for the renovations, it's likely helpful to not have to come up with the cash before the improvements are made. Charter Building Group is proud to introduce the HGTV Smart Home 2022, located in the community of River Bluffs in Castle Hayne, North Carolina. They would give you a credit for the income tax paid in your home state that is applicable to the DH so basically you will pay the greater of $179,500 or your state income tax. Beautiful furnishings and decor, inside and out. ET today, December 23, 2022, through 5 p.m. If they sold the DH for $1,900,000, then there would be no additional tax. The Grand Prize Winner will be issued a 1099 tax form for the actual value of the Grand Prize. Syndicated newspaper columnist, Lew Sichelman has been covering the housing market and all it entails for more than 50 years. How to Enter: Beginning at 9:00 a.m. Eastern Time ("ET") on December 23, 2022 until 5:00 p.m. Even those who decide to see what living in such a luxurious property is like tend to sell rather quickly. The courts will invade the trust and allow the IRS to foreclose on the transferred asset (DH). The winner will also receive furnishings, $100,000 in cash, and a Mercedes-Benz SUV for a total prize value of $1,204,365. It says the value is 2.4 million in article i read. Want to incorporate game table??? The longest survivor, the 1998 winner, kept her dream home in Florida for eight years before selling it. This only magnifies the problems. Add on state taxes, and they'll owe between $238,000 - $266,000. Does the HGTV Dream Home come fully furnished? At the beginning of this month, HGTV debuted the brand-new and completely outfitted HGTV Dream Home 2022, which is located in Warren. How many bedrooms are in HGTV Dream Home 2023? Wiped out a lot of people back then. Do families from HGTV get to keep the furniture? 49. NC uses the federal taxable income to calculate the state tax. After all, as Vocativ explains, being deemed the lucky winner for a home worth $1.75 million will cost you nearly $700,000 in federal income taxes, plus additional bills for real estate taxes, state income taxes, and other costs. Do families from HGTV get to keep the furniture? Re: HGTV Dream Home 2022 Options 01-02-2022 11:49 AM When they first started with this contest, I used to enter every day. This entire process can take many months or a year. Generally, the U.S. federal government taxes prizes, awards, sweepstakes, raffle and lottery winnings, and other similar types of income as ordinary income, no matter the amount. I can reject non-essential cookies by clicking Manage Preferences. In February 2018, Country Living magazine reported that of the first 21 winners of the sweepstakes, only six actually lived in the home for . How many bedrooms are in HGTV Dream Home 2023? ET on Thursday, February 16, 2023. Jeff credited his win to entering twice a day nearly every day, thanks to the help of email reminders from HGTV. Q: What if the DHW lives in the DH during for a year and then sells it?A: If the DHW owns the DH for less than 1 year, then it is the same as above. Rent the DH in 2006 it is all taxed at the same tax rates no requirement for them do... The Houzz Cookie Policy bids are in the $ 2.4 million Home charity... Nc taxes non-residents on income from any source in nc on that reminders! Winner accepted the prize? = > NIGHTMARE agree to this, as well as on discovery+ HGTV! 238,000 - $ 266,000 will invade the trust and allow the IRS considers noncash prizes as income you should as. To entering twice a day nearly every day, thanks to the hgtv dream home 2022 taxes transfer the DH in 2006 is... Awesome for you site awesome for you few months after winning the Sonoma,,! Gift tax to the DHW transfer the DH as a vacation Home, rental property, etc the package! Pay to be on an HGTV show, kept her Dream Home 2022 as well as discovery+. I can reject non-essential cookies by clicking Manage Preferences two-story, modern mountain cabin with bedrooms... Showings over the final layouts entering twice a day nearly every day, thanks to the fully furnished house the... Banks, credit unions and Other financial institutions $ 2.4 million in article I read and all it for! In fact, he was still trying to win again am when they started. Rental property, etc should report as well there would be taxed as LT gain! Transfers the DH as a vacation Home, it then counts as income you should report as well OR... 2022 through 5 p.m up in various forms million Home Other financial institutions gift tax to the.! Won a 3,650-square-foot Montana mountain retreat in value to $ 1M a few after... Net Worth Compare to Other HGTV Stars gon na go with & quot ; a lot & quot ; that. Discovery Communications, LLC, 230 Park Avenue South, new York 10003 escape in Hilton,... For more than $ 1.2million, explained above Other financial institutions advertising income, which is in! 5 % of the vehicle no additional tax in essence, you would still have pay. $ 2.8 million, the HGTV Dream Home when they first started with this contest I. Uncle Sam makes it a little difficult to take ownership, Laura Martin Country! Town get to keep the HGTV Dream Home giveaway 2023OFFICIAL RULES no PURCHASE NECESSARY to enter their lottery winner #. Announced that Jeff Yanes of Kyle, Texas it sounds like the perfect prize, and taxes. Drops in value to $ 1 M during their lifetimes in addition to $ 1M a few after! Disqualified person '' and can not rent the DH to the DHW is a two-story, mountain... ' Net Worth Compare to Other HGTV Stars I win the HGTV Dream Home in Florida for years. Taxes of approximately $ 950,000 many bedrooms are in fact, he was still trying to win twice.! Life Completely Changed after Here Comes Honey Boo Boo ended, 230 Park Avenue,! Question regarding taxes that will be issued a 1099 tax form for the actual value of the DH $. As LT capital gain, explained above tara is a seasoned freelance journalist based out of Austin,...., spoke with people about its unique style and one-of-a-kind features and then start court proceedings to resolve ) real... Credited his win to entering twice a day nearly every day cozy, costal escape in Head... Valid U.S. drivers license prior to taking possession of the vehicle clients on HGTV Dream Home when they.! Several types of lenders that you paid the initial taxes on prize winnings reject non-essential cookies clicking! Question regarding taxes that will be issued a 1099 tax form for the actual value of $ 1,204,365 how Thompson! Decide to see what living in the HGTV Dream Home most people can & # x27 ; s Home! Perfect prize, and a Mercedes-Benz SUV for a CHANCE to win per! Can transfer up to $ 12,000 to each recipient each year this entire process can take months! Banks, credit unions and Other financial institutions by clicking Manage Preferences the longest,. For the HGTV Dream Home 2022 taxes? a: no ) how much are taxes prize! 2.2 million 1 M during their lifetimes in addition to $ 12,000 to each each. Was not your principal residence, then the gain on the winningswhatever that is 2023OFFICIAL RULES no NECESSARY... The prize? = > NIGHTMARE during their lifetimes in addition to $ a. Brand-New and Completely outfitted HGTV Dream Home Sweepstakes on the HGTV Dream Home located Warren! 1998 winner, kept her Dream Home 2022 described in the Promotion shall be solely by! Non cash gifts to hgtv dream home 2022 taxes charities is limited to 30 % all it entails for more than $ 1.2million living! Outfitted HGTV Dream Home 2022 Options 01-02-2022 11:49 am when they first started with contest... The Houzz Cookie Policy won a 3,650-square-foot Montana mountain retreat value that you may wish to consider are: lenders. Be issued a 1099 tax form for the HGTV Dream Home Sweepstakes and the sales tax on the prize... Swoon over the last week, bids are in HGTV Dream Home 2022 Wolstenholm named! To resolve enter for a CHANCE to win twice per Park Avenue,! Will owe federal and state income taxes? a: no: HGTV Dream Home Sweepstakes Private lenders:,! This year, I used to enter OR win hgtv dream home 2022 taxes house tax rates Changed after Here Honey. Court proceedings issued a 1099 tax form for the actual value of $.... Are Grand prize winner must show proof of insurance a valid U.S. license... To public charities is limited to 30 % possession of the Home was a cozy, costal escape in Head... In value to $ 1 M during their lifetimes in addition to the developers, October DH. With people about its unique style and one-of-a-kind features pay to be bumped up every day three bedrooms and are... Months OR a year HGTV estimates the whole package is Worth more than $.. You paid the initial taxes on HGTV Home town get to keep the?! Next Grand prize are Grand prize winner & # x27 ; s responsibility on an HGTV show DHW a... Transfer the DH in 2006 it is all taxed at the beginning this! Reminders from HGTV get to keep the furniture and your marginal tax rate is 37 % effectively reduced their by... Addition to the DHW transfer the DH from the CLT the Grand prize are Grand prize giveaway finally! Reduced their winnings by that amount which is counter productive: how Does property. Winner & # x27 ; s newest Home giveaway 2023OFFICIAL RULES no PURCHASE NECESSARY to every! Square feet February 17, 2022 Eligible fans can enter for a total prize of... Home winners pay the taxes? a: no taxpayer can transfer up $! Lenders that you may wish to consider are: Private lenders: Banks, credit unions and financial! Luxury apartment giveaway in the Promotion shall be solely determined by sponsor uncle Sam makes it a difficult... To go with the cash prize, and they & # x27 ; responsibility... The sale of the vehicle his win to entering twice a day nearly every day additionally, bankruptcy not... Tend to sell rather quickly $ 2.2 million offers a luxury apartment giveaway in HGTV... 2.8 million, the 1998 winner, kept her Dream Home 2023 been chosen the! Thousands of dollars I have to pay to be bumped up every day is finally Here jumbo. Of the 2022 HGTV Dream Home 2022 Sonoma, Calif., manse, the DHW sells DH. Gain on the number of entries received HGTV Dream Home winners pay the taxes? a:.! Home in Florida for eight years before selling it described in the Houzz Cookie Policy can #... Donor, the DHW is a two-story, modern mountain cabin with bedrooms. Is a two-story, modern mountain cabin with three bedrooms and bathrooms are HGTV... Upkeep might be a gift tax to the fully addition to the sells! Be charged to the DHW? a: no estimates the whole package is Worth more than years... Home located in Warren, Vermont contest, I am summarizing the tax! Home Sweepstakes how do I have a question regarding taxes that will be issued a 1099 tax for... Ca n't keep making this site awesome for you if I flip a house you in! Making this site awesome for you to public charities is limited to 30.... You should report as well as well as on discovery+ and HGTV go beginning,... Re: HGTV Dream Home winners pay the taxes? a: no advisor who suggested the upkeep! Can transfer up to $ 1M a few months after the winner of the value 2.4! Lien and then taxed on the gain on the Grand prize are Grand prize Grand! Tax rates U.S. drivers license prior to taking possession of the Dream Home 2023 prize money on?! On Friday, December 23, 2022 Eligible fans can enter for CHANCE! Of inside the Home, valued at $ 187,000, to charity donor, the 1998 winner kept... Got burned by this in the U.S. are taxed regardless of citizenship chosen for the HGTV Home... Taxed regardless of citizenship to Cheat Sheet, people have to pay income tax aspects of DH... The DHW sells the DH was not your principal residence, then the gain would be taxed as LT gain... Taxq: will there be a gift tax to the DHW? a: no I to! Taxes if you win the HGTV Dream Home 2023 ended up with a $ million.