No other show bats 100%

[Flasch186]

Every single Sunday, without fail, im frickin' cryin' over that stinkin' home makeover show. I have tried to not cry. I have tried to hold it in. Just when you think youve turned the corner and you think you're not going to cry, they pan the camera over to the Dad dad's ashes, or the Grandmother's table, or the picture of the family 15 years ago, or the Paunchy neighbor kid who wouldnt leave the youngest girl alone, and youre done. Frickin' crying again. Damint!

[DaddyTorgo]

yeah. without fail this show has me ball every week. But ya know what, I like it. I like that it's a "reality show" that's actually tying to do some good instead of rewarding people that eat roaches or something. They're actually using the hour of TV time to bring us a story of a family in need and then doing something about it. Didn't watch this week, but yea...every week this show, usually before the family even gets home, has me in tears. Great TV. Kudos to ABC.

[korme]

(requesite tough response)

whats 'crying'?

[Farrah Whitworth-Rahn]

I usually get misty eyed - the one with the dad and eight kids who lost their mom made be bawl like a baby.

But being the tax geek that I am - I can't help but wonder if the family has to pay inome tax on the house/appliances/furniture/trip each family receives. Like a contest prize or a lottery win, they must owe something to the Feds. How much would that suck - you get a kick ass new house, and Uncle Sam wants $200,000 in taxes.

Yes, I need to get out more.

[FBPro]

I usually get misty eyed - the one with the dad and eight kids who lost their mom made be bawl like a baby.


Oh, no doubt......

[DaddyTorgo]

you know I thought of this too last episode. The one with the deaf family with the blind & autistic kid. And then I figured that the show must take care of that. Because everything else in it is donated. The appliances and construction and materials. I'm going to dig a bit and see if I can confirm though.

[JonInMiddleGA]

Apparently, you aren't alone in wondering about the tax stuff. A quick google turned up several mentions of the subject, the longest of which appears to be this one.
http://www.signonsandiego.com/uniontrib/20040701/news_1n1exside.html

[DaddyTorgo]

link to a story (veracity unknown)

http://www.realitytvworld.com/index/articles/story.php?s=2552

interesting paragraph from's john's link:

The magazine said that's because the families in the program are "renting" their houses to the production company during the frenetic renovation. A long-standing tax provision allows homes to be rented for less than 15 days a year with no tax consequences, and with improvements voluntarily made during that period by the tenant considered to have no value to the owner.

another interesting tidbit, from my link:

Newsweek reports that one recipient of an "extreme home makeover," who was deployed in Iraq at the time of the show, was extremely dissatisfied with the quality of the work, which was estimated to be worth up to $250,000, but he was unwilling to complain as long as it was all free. However, if he is audited and assessed additional taxes, he plans to sue Endemol USA. Considering the current turmoil at Endemol, we might advise him not to wait until the last minute to sue....

[Farrah Whitworth-Rahn]

Apparently, you aren't alone in wondering about the tax stuff. A quick google turned up several mentions of the subject, the longest of which appears to be this one.
http://www.signonsandiego.com/uniontrib/20040701/news_1n1exside.html


Wow, look at this little nugget -

But Newsweek magazine reported in May that documents it obtained indicate that the producers told participating families they should face no income tax consequences.

Unbelievable! How irresponsible of ABC.

I found some info from my favorite Tax Blog. Yes there is such a thing.

http://taxprof.typepad.com/taxprof_blog/2004/05/tax_consequence.html

And the Newsweek article referenced in the JIMGA post: http://msnbc.msn.com/id/4933223/

[DaddyTorgo]

FOFC investigative reporting - "Blowing the lid off the scandals of tomorrow"

[Farrah Whitworth-Rahn]

The Newsweek article is VERY interesting. Looks like ABC is aggressively interpreting tax law with this one. The IRS is going to challenge this, and these poor home owners are going to be stuck with huge tax bills.

the show leases participants' homes, paying $50,000 for 10 days' rental. Instead of cash, the show gives the family flat-screen TVs and appliances. Since the IRS allows tax-free rentals of less than 15 days, the homeowners don't owe taxes on their new goodies. And by renting the home from the family, producers apparently believe the renovations are tax-free under a "leaseholder improvement" loophole.

But NEWSWEEK ran that logic by a half-dozen outside tax professionals. While some called it clever—even "elegant"—most scoffed at the show's approach, saying the IRS would be highly unlikely to agree with all aspects of it. "When you look at the big picture, these provisions were not meant for this," says Jim Seidel of RIA. The result: if audited, the "Extreme" families could be hit with huge tax bills. The IRS, ABC and the show's producers and accountant declined to comment.

I highly doubt the ten days lease fees are fair market value for the neighborhoods these homes are in. The families get hundreds of thousands of dollars worth of construction and furniture etc. There's no way these homes rent out for tens of thousands of dollars a day. The IRS is going to have a field day with these families.

[ISiddiqui]

Well not just that, but I always wondered if the families realized how much more they were going to pay in property taxes after the renovations? Obviously the property would be valued much, much more.

[Tigercat]

I enjoy the show, and all the stories tug at the emotions in some way, but the builders reactions just get to me sometimes. Its like they go out of their way to play up how emotional the situation is and how its affecting them(as the workers). The stories would be a bit more powerful, to me at least, if they just let the family and their pain and joy speak for themselves. Instead I have a few roll-eyes moment every week when various members of the crew says something along the lines of "THIS is the greatest thing I've ever done," or "this is the strongest family I've ever met."
Let the family get the emotional spotlight i say, screw the attention loving "Stars" of the show.

...thus concludes my 80-year-old-styled complaint of the day.

[Flasch186]

I enjoy the show, and all the stories tug at the emotions in some way, but the builders reactions just get to me sometimes. Its like they go out of their way to play up how emotional the situation is and how its affecting them(as the workers). The stories would be a bit more powerful, to me at least, if they just let the family and their pain and joy speak for themselves. Instead I have a few roll-eyes moment every week when various members of the crew says something along the lines of "THIS is the greatest thing I've ever done," or "this is the strongest family I've ever met."
Let the family get the emotional spotlight i say, screw the attention loving "Stars" of the show.

...thus concludes my 80-year-old-styled complaint of the day.

I can see that, they do seem a bit like camera lovers but Im going to cut them as much slack as they want....especially blonde carpenter and brunette "whatever the hell she does".

[spleen1015]

What a bunch of sissies....

I mean, yeah okay, I tear up, too!

[Samdari]

I would pay the income tax on a new house in order to get the house. It's 30% on the dollar. You got 70% of it for free, so you could easily mortgage the other 30% to pay the taxes. That mortgage payment would be cheaper than rent on a crappy apartment.

If someone offered to gift you a 70% down payment on a beautiful new house, wouldn't you take it? Please, don't feel sorry for the people who only get 70% of a house for free.

[Flasch186]

well, not to start up, but, what if they have their first mortgage, now youre talking about getting a second mortgage and last time I checked it was Extreme career makeover...perhaps, and I have no idea if its true or not but perhaps they cant afford the money.....regardless, I'm jealous (but happy for them) jealous too

[Ksyrup]

When the show first started, they took all comers, and some of the families, while certainly worse off than mine, weren't in all that bad a situation. Then the show picked up steam, they went looking for the worst situations possible, and now none of us has a freakin' chance. :)

Seriously, though, I think it's a worthwhile deal, for a reality show especially. That's certainly got to be a rewarding thing for all those involved - drastically change the lives of people who need help, and spend other people's money to do it. Don't get much better than that.

[JonInMiddleGA]

That's certainly got to be a rewarding thing for all those involved - drastically change the lives of people who need help, and spend other people's money to do it. Don't get much better than that.

Not to mention the millions of dollars in free publicity for any of the trade professionals involved in the project. Otherwise, it's a Habitat For Humanity project.

FTR, I'm not knocking anybody for participating in the show, or the show itself. I'm just sayin' the altruistic aspect of this seems pretty easy to blow out of proportion to reality.

[KWhit]

The thing that bothers me is that all the grunt work that is done is from volunteers and yet ABC is making huge $$ from this show. Somehow that seems wrong to me.

[Ksyrup]

Not to mention the millions of dollars in free publicity for any of the trade professionals involved in the project. Otherwise, it's a Habitat For Humanity project.

FTR, I'm not knocking anybody for participating in the show, or the show itself. I'm just sayin' the altruistic aspect of this seems pretty easy to blow out of proportion to reality.
But the bottom line is that we're all out to make money. The fact that they get to do that by promoting themselves through doing what they do on this show doesn't necessarily lessen the non-monetary "reward" they get for being able to help people. Maybe they're all actors and don't give a shit about the people, but it's awfully hard to see that if you watch the show.

[JonInMiddleGA]

But the bottom line is that we're all out to make money. The fact that they get to do that by promoting themselves through doing what they do on this show doesn't necessarily lessen the non-monetary "reward" they get for being able to help people. Maybe they're all actors and don't give a shit about the people, but it's awfully hard to see that if you watch the show.

That's cool by me, just pointing out the need to keep it all in perspective.

[Philliesfan980]

I would pay the income tax on a new house in order to get the house. It's 30% on the dollar. You got 70% of it for free, so you could easily mortgage the other 30% to pay the taxes. That mortgage payment would be cheaper than rent on a crappy apartment.

If someone offered to gift you a 70% down payment on a beautiful new house, wouldn't you take it? Please, don't feel sorry for the people who only get 70% of a house for free.

Agreed. But if their work is really as poor as the article describes it to be, is it really worth the discount?

[Samdari]

Agreed. But if their work is really as poor as the article describes it to be, is it really worth the discount?

Sure, If after the cameras are off, and you had to pay 30% of the 'value' of the house as income, and then turn around and sell the house for 80% of that supposed value....

[Ksyrup]

I've been waiting for confirmation of this...



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: 2:48 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.

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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.

But the Illinois couple doesn't want the headaches that come with their new house. They want the Fox show producers to buy it, the report said. http://i.cnn.net/money/images/bug.gif (http://cnnmoney.printthis.clickability.com/pt/cpt?action=cpt&title=Tax+bills+high+for+reality+TV+winners+-+Apr.+15%2C+2005&expire=&urlID=13917011&fb=Y&url=http%3A%2F%2Fmoney.cnn.com%2F2005%2F04%2F15%2Fnews%2Fnewsmakers%2Freality_taxes%2Findex.ht#TOP)

[stkelly52]

So far there is still no challenge to Home Makeovers "lease the property" tax shelter reported yet.

[Huckleberry]

Didn't they build a new house last week (this week?)? Those people are screwed.

[stkelly52]

You know, I have been thinking about this tax loophole and how many people say that it violates the spirit of the Law if not the letter of it. What I wonder is: What is the spirit of the Law? Why on earth would anyone lease out thier property for less than 15 days? The only reason that I can think of is for a TV or movie to be shot which includes video of a house. Is this why the law was made? If not, what was the purpose behind it?

[Ksyrup]

So far there is still no challenge to Home Makeovers "lease the property" tax shelter reported yet.
Not sure about that. The article wasn't too specific about the reasons for the tax issues, and since one couple has a $500K+ tax bill, that might have something to do with the tax shelter coming into question.

[Flasch186]

i think tonights episode is the one i worked on in Hastings....you wont see me though. I was one of about 250 people who were supposed to pull the house down, but no matter what they show tonight...if they try to say we succeeded theyre lying. They had to attach some ropes to some mack trucks and bulldozers around the back of the house. I hope that they just say that right there and not try to claim we could do it, to show how crappy the house was. The whole street was crappy houses and if im not mistaken they actually worked on a bunch of hosues that week, replacing roofs etc.

[stkelly52]

Not sure about that. The article wasn't too specific about the reasons for the tax issues, and since one couple has a $500K+ tax bill, that might have something to do with the tax shelter coming into question.

Right, but the $500,000 bill was from a different show (Renovate my family), there is speculation about what could happen to Extream Makeover families, but nothing has come from them yet.

[Ksyrup]

OK, I didn't catch that. But, if it's the same tax issue, I don't see how it wouldn't apply to Extreme Makeover. Unless the producers of that show got better legal advice than the Fox show.

[Fritz]

this forum hasn't seen this many pussies since the Mary Kay forums were hacked and re-directed here.

[Flasch186]

wasnt mine last night...try again next week

[Scoobz0202]

Ha... Well tonights I think set a record for the amount of times I got misty eyed. I hate this show :)

[ISiddiqui]

I've been waiting for confirmation of this...
Ouch... perhaps the families should see if they can get FOX to cover the tax bill? If not, then maybe threaten to go to the media over it.

[LoneStarGirl]

Tonights show was one of the best ones so far. Especially when they gave those two families 25,000 dollars... I was sobbing.

And I dont know how you people can watch a beautiful show like that and only think of the money. I have seen almost every episode and until viewing this thread had not once even thought of the money the recipients would have to pay in taxes. Just enjoy the show and stop bitching and whining :p

[Scoobz0202]

When they gave the black family the check I was also. I was really blubbering like a baby when they first saw the house and the wife explained what it looked like.

[Wasabiak]

The IRS can kiss my ass. Fuckin' pukes.

Ok, i'm better now............

[Galaxy]

Now, what if you live in the neighborhood, would your taxes and home value increase due to the big increase that these homes would have? What if they sold it?

[Flasch186]

like a girl tonight :( wiping on the sleeve and everything. 3R and GF just laugh at me, bitches!!

[FBPro]

Well, I really don't care what folks say this is one of my favorite shows and it never fails at some point I'm balling as well.......sometimes all the way through. There are much worse shows on than this.