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Posted to rec.woodworking
MJ
 
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Default OT - Extreme Makeover Home Edition?

Not so with this one local family. They really were pinched
with the extra tax bill. Also, any "winnings" they get
from the producers of the show,
they will have declare as income. Even if the money came as rent -
which is what they do to avoid the big problem - all the work they
do could be considered income, but signing a rental agreement,
that allows for the renter to remodel, allows the family to get
that without a tax penalty.

Also, taxes are "forever". Meaning, if they got a check for $100,000,
that would only cover taxes for about 10 or 12 years, at best
on a million dollar house here in Calif.

MJ Wallace