I don't mean to be a downer, but...

[DaveinTexas]

I enjoy Extreme Makeover: Home Edition as much as the other guy. But, when they, ABC, gets through completely renovating someone's home "for free" and gifting college educations to their children, free cars and the like; who pays the tax?

Do they, ABC, in January, send these families 1099-MISC with $500,000 in box 3, other income?

That issue is never discussed on the show. "Congratulations, just be sure to save up about $200,000 to pay your tax in April."

I wonder if anyone else has thought about this. Maybe its just me.

[geekgirldany]

Here are a couple of good stories on it:

http://www.realitytvworld.com/news/abc-extreme-makeover-home-edition-exploits-dubious-means-dodge-taxes-2552.php

http://www.signonsandiego.com/uniontrib/20040701/news_1n1exside.html

[Bees Knees]

Now I know why they are in such a hurry to get the project done. If they hit the 15th day, their tax sham will collapse.

The shows producers are correct. Code section 280A(d)(1)(A) says nothing about the 14 rental days being required to be at fair rental value. Only section 280A(d)(1)(B) has that requirement.

The question the court would have to decide is if the rental contract is valid. Can the TV show really make the claim that they are just renting the home for 14 days or less with just a few improvements made along the way?

[veritas]

I think they should have Richard Hatch do their tax returns. He's pretty good at interpeting the tax code.

[geekgirldany]

I believe one of the people they redid a house tried to sale it back to ABC or tried to sale it period. The property taxes were so high they couldn't pay it.

[oceanlovin'ea]

Interesting!!!

I have often wondered and my daughter and I discussed this subject several times. Sometimes on the show, the builder will either offer to pay the mortgage for a year or sometimes they give them the home free and clear. But that is not always the case or at least that is not what they always say on TV. If there is a mortgage associated with the work done, how can these people afford the mortgage payments? If they could afford that kind of money, they could have fixed up their own house in the first place.

Nothing is ever free!!!!!!!!

Linda F

[Unregistered]

I have often wondered and my daughter and I discussed this subject several times. Sometimes on the show, the builder will either offer to pay the mortgage for a year or sometimes they give them the home free and clear. But that is not always the case or at least that is not what they always say on TV. If there is a mortgage associated with the work done, how can these people afford the mortgage payments? If they could afford that kind of money, they could have fixed up their own house in the first place.

Nothing is ever free!!!!!!!!

Linda F

Only advice, which here is Wonderful!!!