Metropolis Reality Forums - Reality TV winners get tax reality check

Sponsored by: The Fans!

Welcome, Guest. Please Login or Register.
Nov 23^rd, 2024, 2:46am

Upcoming Premiere Dates:
Survivor 23, Season premiere
Thursday, September 14 (8:00-9:30 PM, ET/PT) on CBS

Metropolis Reality Forums Ť Reality TV winners get tax reality check ť

   Metropolis Reality Forums
   Other Television Shows
   Other Television Shows (Moderators: lakelady, yesteach, MediaScribe, Bumper, Isle_be_back)
   Reality TV winners get tax reality check

Previous topic | New Topic | Next topic »

Pages: 1

Add Poll

Notify of replies

Send Topic

Author

Topic: Reality TV winners get tax reality check (Read 242 times)

Rhune
ForumsNet Administrator

Gender:

Posts: 292

Reality TV winners get tax reality check
« on: Apr 15^th, 2005, 6:11pm »

Quote

Modify

Reality TV winners get tax reality check

Having a contractor create your dream home for a television show is great. Then the tax bill comes.
April 15, 2005: 6:22 PM EDT

NEW YORK (CNN/Money) - Some reality television winners apparently got a brutal reality check this tax season.

Daily Variety reported Friday that families featured on the ABC hit show "Extreme Makeover: Home Edition" and Fox's "Renovate My Family" not only are getting their dream homes, but also nightmare tax bills.

One Illinois husband and wife, according to the entertainment industry publication, discovered it owes $529,000 in taxes after Fox-hired contractors tore down their old house and built a new one with special accommodations for their paralyzed son. The renovation aired on Fox this past summer.

Unexpected tax bills aren't new for reality TV show contestants who receive cash, merchandise or services. "Survivor" winner Richard Hatch, for instance, is being prosecuted for failing to pay taxes on his $1 million in winnings.

And in another highly-publicized case, Oprah Winfrey took heat when she gave away free Pontiac G6 cars to 276 members of her daily show audience but didn't cover their tax bills.

The report in Daily Variety, however, said the belated tax bills are becoming serious problems for winners of home renovation and other wish-fulfillment shows now in vogue.

"You can ruin someone's life by giving them everything they want," one Hollywood producer told the trade paper. "If you take a log cabin and replace it with a mansion, there are tax consequences to that."

The tax pain isn't limited to the initial renovation costs. Property taxes, insurance rates and utility bills all could rise too.

The producers of "Extreme Makeover" try to lower contestants' tax bills by leasing their property during the two-week renovation and filming. Those renovations are then usually tax-exempt.

Meanwhile, the producers of "Renovate My Family" told Daily Variety that they cover the tax bill for families on their show. They recently offered the Illinois family $215,000 to cover their tax liabilities.

The family turned them down and now want the Fox show producers to buy the house, the report said.

IP Logged