HGTV / Rustic White Photography LLC

Massive HGTV Dream Home Comes With Massive Tax Burden

Winning the HGTV Dream Home might not be as lucky as you thought. It could leave you in a lot of debt.

By Melissa Prax | March 30, 2016

Jealous your name wasn't drawn to win this year's HGTV Dream Home? 

Well, the minimum of $693,000 in taxes the winner will likely owe might make you feel better. 

The 2016 top prize is valued at over $1.5 million and includes a lush Florida home, a boat, a new car and $250,000 in cash.

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According to a Vocativ interview with a tax expert, part of the enormous tax burden comes from federal income taxes, and the more than half a million doesn't even account for state income or real estate taxes.

Now, if you didn't want to move into the new home, one option would be to just put the house on the market and keep the money — which would eliminate the fear of going into future foreclosure, like some past winners

So it seems like winning the grand prize is kind of like winning the lottery. It's just not always the lucky break some are hoping for. 

This video includes an image from Getty Images and clips from HGTV

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