Visualizing Data to Promote Better Public Policy

            FB-icon.jpg Twitter-Icon.jpg G-Icon.png

Estimating the Tax Impact of Winning the 2014 diy Lakeside Blog Cabin

Nov 25, 2013


One of the fun and popular articles I wrote on my previous blog, Wealth Alchemy, was to estimate the tax impact of winning a home via HGTV or diy network. While winning such a home may seem to be a dream come true, the reality is that it often turns into a tax nightmare.

It was just announced that this year's diy network 2014 Blog Cabin will be in Winter Haven, Florida. The good news is that it is in Florida which does not have an individual income tax so there will be no state tax bill for winning this home. Florida also has the eighth lowest tax burden in the country. [Update: There would be no state income tax bill if the winner lives in Florida or other state with no income tax. Otherwise, the state income tax is indeterminate since we need to know the winner's state of residency. See comments for more information.]

That being said, it's really the federal tax bill that is the whopper. While we don't yet know the details of the giveaway, the winner is often provided two ways to pay the tax bill.

  • First, part of the prize is cash which, after-tax of course, can be used to pay taxes. 

  • Second, there is often a cash in-lieu of the house which the winner can take--with this option the winner can simply take the cash and run, again, after paying taxes on it.

To provide some context on the size of the estimated tax bill, just look at the one of the last giveaway in Florida--the 2012 HGTV Urban Oasis Giveaway in Miami, Florida. The federal individual income tax bill alone came to a whopping $274,900. If you plan on keeping the home, best be prepared to take out a home-equity loan to pay Uncle Sam since the giveaway did not include any cash.

Fortunately, HGTV did provide an escape hatch by offering $750,000 in lieu of taking possession of the home. If the winner opts for this choice, they will take home $527,701 free-and-clear after paying income taxes of $222,400.

Other examples included:


Oh, and keep in mind that this does not include your property tax bill which you will have to pay year, after year, after year . . . well, you get the picture. Fortunately, the Tax Foundation's property tax calculator shows that Polk County's (where Winter Haven is located) has an average tax burden as a percent of the median home value at 1.04 percent. Though on a million dollar home that can add up quickly.

As soon as the details of the giveaway are made public, we will post our estimate of the tax bill that will be due. In the meantime, check out diy's announcement video . . . and start saving now to pay your tax bill if you plan on entering the contest.


Category: Tax Burdens

J. Scott Moody

J. Scott Moody has over 17 years as a public policy economist with a specialty in tax policy and has over 170 publications. He has worked for numerous national and state-based think tanks such as State Budget Solutions, Tax Foundation, Heritage Foundation, and The Maine Heritage Policy Center.



Click Here to Calculate
Your Income Tax!


Check Out Our Unique Apps:

Government Workforce App

Tax Burden App

Cost of Living App

Federal Taxes and Cost of Living App

Check Out All Posts For Your State:





























New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota





Rhode Island

South Carolina

South Dakota







West Virginia



Category List

Tag List

Nebraska (2)
Council on State Taxation (1)
Individual Income Tax Calculator (2)
California Income Tax Burden (1)
Gordon Tullock (1)
South Carolina (2)
Fix SS Now (1)
Joe The Economist (1)
Mercatus Center (1)
Johnny Manziel (1)
Montana (2)
Severance Tax Permanent Fund (1)
Income Tax (1)
Congressional Budget Office (1)
AFDC (1)
Maryland (2)
Concord Coalition (1)
HGTV 2014 Dream Home (1)
New Hampshire (4)
Maine (3)
Tax Collections (1)
Census Bureau (2)
Daniel DiSalvo (1)
Nevada (2)
Public Assistance (1)
Idaho (2)
South Dakota (2)
U.S. Census Bureau (2)
Government Compensation (48)
Florida (3)
Illinois (3)
Government Employment (48)
Alaska Policy Forum (1)
Marginal Tax Rates (1)
General Assistance (1)
HGTV 2014 Smart Home (1)
Oklahoma (2)
Rhode Island (2)
Tax Havens (1)
Tax Foundation (13)
Federal Budget Deficit (2)
Washington (2)
COST (1)
Severance Taxes (4)
Illinois Policy Institute (1)
Wisconsin (2)
Manhattan Institute for Public Policy Research (1)
Jock Tax (1)
Local Option Sales Tax (1)
Louisiana (2)
Mississippi (2)
Veronique de Rugy (1)
Insurance Premiums (1)
North Carolina (3)
Wyoming (3)
Coal Severance Tax Trust Fund (1)
Colorado (2)
Business Taxes (1)
Missouri (2)
Government Benefits (49)
Hoover Institution (1)
Manufacturing (1)
Connecticut (3)
Bankruptcy (1)
Utah (2)
Federal Debt (2)
Federal Income Tax Burden (3)
John Burns (1)
Healthcare (1)
New Jersey (2)
Migration (2)
Aid to Families with Dependent Children (1) (1)
Social Security Reform (1)
Interest Rates (2)
Transparent Nevada (1)
Lake Tahoe California (1)
Hawaii (3)
IRS (1)
Individual Income Tax Burden (3)
Proposition 2 1/2 (1)
Progressive Individual Income Tax (1)
TANF (1)
Arkansas (2)
Free-Stater (2)
Employment (1)
Alaska (4)
Taxes Matter (2)
Plausible Baseline (1)
West Virginia (2)
Wyoming Taxpayers Association (1)
Michigan (2)
Proposition 13 (2)
Municipal Individual Income Tax (1)
Welfare Reform (1)
Iowa (2)
New Mexico (2)
Oklahoma Council of Public Affairs (1) (1)
Oregon (2)
Cross-Border Shopping (3)
New York (3)
Schaffer's Mill (1)
Government Wages and Salaries (48)
Arizona (2)
Tax Reform (2)
Social Security (1)
diy network (2)
Ali Wolf (1)
Government Workforce (51)
Unincorporated Business Tax (1)
Kansas (2)
HGTV 2014 Urban Oasis (1)
Robert Hall (1)
Alabama (2)
Tennessee (2)
Dr. Arthur Woolf (1)
Pennsylvania (2)
Tax Cuts (1)
Indiana (3)
Law of Unintended Consequences (1)
Sales Tax (1)
Student Loans (1)
Tax Burdens (53)
Ohio (5)
Business Flat Tax (1)
Know Your Rates (1)
Washington, D.C. (1)
Flat Tax (1)
Act 60 (1)
Tax Exporting (4)
Property Taxes (1)
Public Choice Economics (1)
Buckeye Institute (1)
Massachusetts (2)
Obamacare (1)
Kentucky (2)
Business Enterprise Tax (1)
Winter Haven Florida (1)
Virginia (2)
diy 2014 Blog Cabin (2)
2014 HGTV Dream Home (1)
Texas (3)
State Business Taxes (1)
Internal Revenue Service (1)
Local Individual Income Tax (1)
Federal Income Tax Liability (2)
Rick Palacios Jr. (1)
Federal Interest Payments (2)
Georgia (4)
2013 Migration Patterns (1)
Permanent Wyoming Mineral Trust Fund (1)
ALEC (1)
Delaware (2)
Sales Tax Pyramiding (1)
James Buchanan (1)
Alvin Rabushka (1)
California (6)
Vermont (3)
Local Business Taxes (1)
North Dakota (4)
Atlas Van Lines (1)
Temporary Assistance for Needy Families (1)
John Mauldin (1)
2014 Blog Cabin (1)
Individual Income Tax Cuts (1)
Minnesota (2)
Gross Receipts Tax (3)
Hydraulic Fracturing (2)
Fiscal Cliff (2)
Property Tax (3)

Tag Cloud

IowaCross-Border ShoppingFederal Budget DeficitVirginiaTANFWinter Haven FloridaSales TaxMaineHealthcareMarylandOhioObamacareTax CutsGordon TullockOregonLocal Business TaxesBuckeye InstituteMontanaState Business TaxesMichiganHawaiiHGTV 2014 Smart HomeAlabamaManhattan Institute for Public Policy ResearchNevadaPennsylvaniaTax CollectionsUtah2014 HGTV Dream HomeAli WolfNebraska2013 Migration PatternsPublic AssistanceNew MexicoInsurance PremiumsNew HampshireJohn MauldinBankruptcyIllinoisIllinois Policy InstituteTax FoundationDaniel DiSalvoUnincorporated Business TaxInterest RatesSeverance TaxesMississippiNorth CarolinaMassachusettsWisconsinMinnesotaMarginal Tax RatesPermanent Wyoming Mineral Trust Fund2014 Blog CabinIndividual Income Tax CutsVeronique de RugyFiscal CliffJames BuchananRhode IslandSeverance Tax Permanent FundSouth CarolinaKnow Your RatesArizonaRick Palacios Jr.Taxes MatterColoradoLaw of Unintended ConsequencesDelawareWest VirginiaTax HavensJohn BurnsTax-Rates.comOklahoma Council of Public AffairsFederal Interest PaymentsProperty TaxesFederal DebtHGTV 2014 Dream HomeIdahoKansasFlat TaxSouth DakotaIncome TaxGovernment WorkforceBusiness Enterprise TaxBusiness TaxesIndividual Income Tax BurdenProposition 13Act 60Washington, D.C.Local Option Sales TaxConcord CoalitionAid to Families with Dependent ChildrenEmploymentWashingtonTexasJock TaxKentuckyWyoming Taxpayers AssociationAlaska Policy ForumRobert HallIndividual Income Tax CalculatorPlausible BaselineGovernment BenefitsOklahomaHoover InstitutionFederal Income Tax BurdenTax BurdensMissouriLocal Individual Income TaxTennesseeConnecticutTax ReformGovernment Wages and SalariesFree-StaterWyomingRealEstateConsulting.comTax ExportingGross Receipts TaxFederal Income Tax LiabilityCaliforniaWelfare ReformMigrationLake Tahoe CaliforniaU.S. Census BureauManufacturingSales Tax PyramidingAlvin RabushkaMercatus CenterGeneral AssistanceVermontHGTV 2014 Urban OasisCouncil on State TaxationTransparent NevadaDr. Arthur WoolfJohnny ManzielProposition 2 1/2California Income Tax BurdenSocial SecurityPublic Choice EconomicsBusiness Flat TaxArkansasdiy 2014 Blog CabinProgressive Individual Income TaxCOSTFix SS NowAlaskaNew JerseyGovernment EmploymentALECTemporary Assistance for Needy FamiliesIndianaNorth DakotaAtlas Van LinesCoal Severance Tax Trust FundStudent LoansProperty TaxLouisianaSocial Security ReformIRSCongressional Budget OfficeNew YorkGeorgiaCensus BureauHydraulic FracturingMunicipal Individual Income TaxGovernment CompensationSchaffer's MillAFDCdiy networkJoe The EconomistInternal Revenue ServiceFlorida


C O N T A C T   U S  -  C L I C K   H E R E