| EM:HE Kirkland, Wednesday update! | <– Date –> <– Thread –> |
From: Todd Walke (racertod racertodd.com)
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| Date: Wed, 3 Oct 2007 21:40:01 -0700 (PDT) | |
Just added some more pictures to my Extreme Makeover: Home Edition
page. Today is the last day before the reveal and the house is almost
finished. Click on the link at the top of the page to take you to
Wednesday's update...
http://www.pureluckdesign.com/makeover/
I found out the answer to the question of whether the homeowners of these makeovers have to pay taxes on the value of the work done.
Apparently, section 280A(g) of the IRS tax code allows you to rent your home out for no more than 15 days per year without reporting that rental income. The producers structure the contract to say that they are leasing your house for a two weeks for a payment of $50,000 and that the improvements to their homes are the rental payment that the show pays for filming in their homes for the two weeks during the time the improvements are being done. The rental payment is treated as made in-kind with TVs and other appliances (many of which are donated by Sears), and then the rest of the improvements are considered "leasehold improvements" that revert to the owner without taxation when the tenant (the television production) leaves.
So, I guess this means if Steve J. rented my house for a week and left say, an F40, in the garage in lieu of payment I'd be able to keep the car without paying taxes. Theoretically, of course.
The IRS, in the Extreme Makeover case, is in a no-win situation. If it takes no action, it permits individuals to get away with a dubious tax dodge. If it audits the show's winners, though, it will receive huge negative publicity for targeting poor people. You know the TV news weasels would jump all over the news of an audit like that.
Lord, just give me a simple no-deductions flat tax so someone can just give me money or stuff without resorting to semi-legal garbage like this.
http://www.pureluckdesign.com/makeover/
I found out the answer to the question of whether the homeowners of these makeovers have to pay taxes on the value of the work done.
Apparently, section 280A(g) of the IRS tax code allows you to rent your home out for no more than 15 days per year without reporting that rental income. The producers structure the contract to say that they are leasing your house for a two weeks for a payment of $50,000 and that the improvements to their homes are the rental payment that the show pays for filming in their homes for the two weeks during the time the improvements are being done. The rental payment is treated as made in-kind with TVs and other appliances (many of which are donated by Sears), and then the rest of the improvements are considered "leasehold improvements" that revert to the owner without taxation when the tenant (the television production) leaves.
So, I guess this means if Steve J. rented my house for a week and left say, an F40, in the garage in lieu of payment I'd be able to keep the car without paying taxes. Theoretically, of course.
The IRS, in the Extreme Makeover case, is in a no-win situation. If it takes no action, it permits individuals to get away with a dubious tax dodge. If it audits the show's winners, though, it will receive huge negative publicity for targeting poor people. You know the TV news weasels would jump all over the news of an audit like that.
Lord, just give me a simple no-deductions flat tax so someone can just give me money or stuff without resorting to semi-legal garbage like this.
Todd Seattle,WA '86 GTI, Red of course. (exciting racey car) 265,000 miles '87 Golf, Polar Silver. (boring work car) 629,000 miles <- Yeah, baby! http://www.pureluckdesign.com <-Ferrari & VW stuff
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