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Extreme Makover

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robert szappanos

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Extreme Makover

by robert szappanos » Wed Nov 14, 2007 6:40 pm

House looks great. Valued at 2 million dollars. Question now is who will pay for the property tax...around 10 thousand a year and the utilities and upkeep and insurance. Sure hope they factored that all in....
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Robin Garr

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Re: Extreme Makover

by Robin Garr » Wed Nov 14, 2007 6:51 pm

robert szappanos wrote:House looks great. Valued at 2 million dollars. Question now is who will pay for the property tax...around 10 thousand a year and the utilities and upkeep and insurance. Sure hope they factored that all in....


With all respect to the lucky family involved, I'm really curious why the Courier-Journal gave this event something like six front-page stories over seven days. They didn't cover the bridge project, the arena or the library tax with as much ink as that.
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Beth K.

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by Beth K. » Wed Nov 14, 2007 7:09 pm

I think the simple answer is: $$$$$. That must sell more papers than city projects. More specifically: it sells more papers to non-subscribers. Demographics, my dear, democraphics. . .

I've always wondered about the property tax thing too.
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Steve Shade

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Re: Extreme Makover

by Steve Shade » Wed Nov 14, 2007 8:34 pm

robert szappanos wrote:House looks great. Valued at 2 million dollars. Question now is who will pay for the property tax...around 10 thousand a year and the utilities and upkeep and insurance. Sure hope they factored that all in....


Not only property tax, but income tax. I am not very knowledge about income tax, but as I recall, a gift over 10,000 has to be reported and taxes paid.

Looked like they lived in a modest but fairly nice house and now have a big one, although I doubt two million.
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Re: Extreme Makover

by Steve Shade » Wed Nov 14, 2007 8:35 pm

Robin Garr wrote:
robert szappanos wrote:House looks great. Valued at 2 million dollars. Question now is who will pay for the property tax...around 10 thousand a year and the utilities and upkeep and insurance. Sure hope they factored that all in....


With all respect to the lucky family involved, I'm really curious why the Courier-Journal gave this event something like six front-page stories over seven days. They didn't cover the bridge project, the arena or the library tax with as much ink as that.


If you go the CJ website you will see hundreds of pictures, plus the stories.
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Emilie Knieriem

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by Emilie Knieriem » Wed Nov 14, 2007 9:00 pm

From my understanding of the tax laws, and please don't quote me, ABC actually leased the house from the Hughes family in order to do the renovations. There is therefore some loophole they have found so that the Hughes family don't have to pay for the capital gain taxes to their property. However, they will still have to pay the increased property taxes and the neighborhood's property taxes will increase as well. Also from a tax standpoint you better believe the IRS is standing by to tax all furniture and fixtures that were placed into the house. According to an IRS tax lawyer they will tax everything down to the silverware. Just seems kinda overboard to me for that. Regardless, this is the main reason everyone who can donate to Fifth Third for the family should, this will help out will all of the above unforseen expenses.
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Louisville, KY 40207
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Emilie Knieriem

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by Emilie Knieriem » Wed Nov 14, 2007 9:01 pm

From my understanding of the tax laws, and please don't quote me, ABC actually leased the house from the Hughes family in order to do the renovations. There is therefore some loophole they have found so that the Hughes family don't have to pay for the capital gain taxes to their property. However, they will still have to pay the increased property taxes and the neighborhood's property taxes will increase as well. Also from a tax standpoint you better believe the IRS is standing by to tax all furniture and fixtures that were placed into the house. According to an IRS tax lawyer they will tax everything down to the silverware. Just seems kinda overboard to me for that. Regardless, this is the main reason everyone who can donate to Fifth Third for the family should, this will help out will all of the above unforseen expenses.
Emilie Knieriem
60 West Bistro & Martini Bar
3939 Shelbyville Rd.
Louisville, KY 40207
www.60westbistro.com
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Ron Johnson

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by Ron Johnson » Wed Nov 14, 2007 9:50 pm

The capital gains tax is not the problem. It is the increased property tax and the income tax. Anything that you are given of value is income. This home, if appraised at 2 million dollars, could mean that this family owes about 800K in income taxes. I hope that ABC pays that as part of the show.
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robert szappanos

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by robert szappanos » Wed Nov 14, 2007 9:53 pm

As mentioned also if that makes the property tax go up for the people around them....well...The happiness may wear off over time....
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Aaron Newton

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by Aaron Newton » Thu Nov 15, 2007 9:08 am

Was hoping the convenient side of Beuchel Bank would be open this morning now that it's all over, but no, it's still blocked off, unless you live between Beuchel Bypass and the first apartment complex. Tomorrow definitely...
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TP Lowe

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by TP Lowe » Thu Nov 15, 2007 9:16 am

The husband and wife will have lifetime exclusions they can use to absorb any (or most) gift tax. There are certainly some interesting ways to use trusts to avoid gift taxes. It really would be interesting to know how this was structured to avoid the taxes. I wonder the same thing every time I see this show (gift taxes, ongoing maintenance, property taxes, etc etc - how do the new owners handle it over time?).
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by Ron Johnson » Thu Nov 15, 2007 11:19 am

TP Lowe wrote:The husband and wife will have lifetime exclusions they can use to absorb any (or most) gift tax. There are certainly some interesting ways to use trusts to avoid gift taxes. It really would be interesting to know how this was structured to avoid the taxes. I wonder the same thing every time I see this show (gift taxes, ongoing maintenance, property taxes, etc etc - how do the new owners handle it over time?).


All very true. I hope, and have to believe, that ABC hired an attorney to structure it in such a way as to protect the family.

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