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Gilda · 09-24-2006, 05:36 PM

The house and all the interiors are a gift from ABC. The residents don't have to pay anything for it. I'm unsure of whether ABC pays off their existing mortgages. ABC uses a loophole in the tax laws to help the residents avoid paying taxes. They rent the house from the owners. The subsequent home can thus be listed as leaseholder improvements, which are not taxable, and the interior goods, such as furniture and tvs, are used as rent for the two weeks the family is out of the home.

The owners do, however, have to pay taxes on the value of the new home and maintain it themselves, which can be a struggle given the additional size and value, the additional heating and cooling costs, and the extensive landscaping which tends to be high maintenance. I've also read that the IRS may not agree with the value of the new home not being taxable, that the leaseholder improvements should be taxed based on the difference in value between the old and new homes.

Gilda

09-24-2006, 05:36 PM	#3 (permalink)
Gilda 32 flavors and then some Location: Out on a wire.	The house and all the interiors are a gift from ABC. The residents don't have to pay anything for it. I'm unsure of whether ABC pays off their existing mortgages. ABC uses a loophole in the tax laws to help the residents avoid paying taxes. They rent the house from the owners. The subsequent home can thus be listed as leaseholder improvements, which are not taxable, and the interior goods, such as furniture and tvs, are used as rent for the two weeks the family is out of the home. The owners do, however, have to pay taxes on the value of the new home and maintain it themselves, which can be a struggle given the additional size and value, the additional heating and cooling costs, and the extensive landscaping which tends to be high maintenance. I've also read that the IRS may not agree with the value of the new home not being taxable, that the leaseholder improvements should be taxed based on the difference in value between the old and new homes. Gilda __________________ I'm against ending blackness. I believe that everyone has a right to be black, it's a choice, and I support that. ~Steven Colbert Last edited by Gilda; 09-24-2006 at 05:39 PM..