#15: The Reality Behind Winning the HGTV Dream Home

HGTV’s annual Dream Home giveaway sounds like a fantasy come true—an extravagant, fully furnished house awarded to one lucky winner. But behind the glamour lies a harsh financial reality. The IRS treats the prize as taxable income, leaving winners responsible for paying roughly 40% of the home’s value in federal taxes alone.

Add maintenance and property taxes, and the dream can quickly become a burden. As a result, most winners are forced to sell the home or take a cash option instead, transforming what seems like a life-changing windfall into a complicated financial dilemma.