'Extreme' tax bill - Extreme Makeover Home Edition

[Kadie]

'Extreme' tax bill
Penngrove family may face hundreds of thousands in income taxes; property tax doubles
Wednesday, March 23, 2005

By JOSE L. SANCHEZ Jr.
THE PRESS DEMOCRAT

Last year, the Pope family got an "Extreme Makeover" of their aging Penngrove house worth an estimated $1.5 million.

Now they are facing an extreme tax bill.

Their property tax doubled to $6,500 a year, and private tax experts say the family also might face six-figure($600,000)income tax bills.

For the Popes, who live on a modest income, it's a frightening possibility.

"This is very scary for us," Caroline Pope said. "What if this house gets taken away?"

http://www1.pressdemocrat.com/apps/pbcs.dll/article?AID=/20050323/NEWS/503230304/1033/NEWS01

[sasquatch]

1. How fucking sad

This is a ironic tragedy that takes your breath away when you think about it.

[salin]

2. Real world example of beware of what you wish for...

sometimes the good luck - turns into a curse.

Sounds like an awful, and unanticipated, problem for this family. I wish them well.

[Trillo]

3. It would seem their best choice is to attempt to sell and move on.

If it doesn't sell for the given price, maybe they can petition to reduce appraised value, since selling is absolute true market value.

How's that saying go, "don't look a gift horse in the mouth"? Was this another lie? Should it have been: carefully examine all gift horse's mouths.

[Kadie]

4. It would be sad if they had to sell

Since the house was built with their daughters special needs in mind.

snip...
The Sonoma County assessor recently valued the house at $603,600. The assessment excludes several hundred thousand dollars worth of improvements intended to protect the Popes' 14-year-old daughter, Shelby, who is allergic to sunlight.

[Trillo]

5. Agree completely.

If it was me and I didn't want to move, it'd probably be because I give high value to the neighbors, likely far in excess of any market value.

Unfortunately, our society doesn't value such things. (One of its sicknesses)

It is sad, but they're still probably better off selling and realizing any gain than reverting to some hairbrained tax-avoidance scheme. Just my gut feeling.

On edit, added:
It occurred to me that 'declared retail value' of any gift(s) they received could easily be inflated as part of someone else's schemes.

and

Too bad they won't be able to declare chapter 7 anymore. Maybe they'd still qualify under the disposable income test.