New press reports indicate that ABC’s lawyers continue to take the aggressive tax position that recipients of home renovations through the TV show Extreme Makeover — Home Edition do not have to include the value of the home improvements in income because they come within the short term rental payment exception of § 280A(g):
To avoid saddling families with that expense, the show reportedly leases the properties it makes over. The improvements it makes amount to the “rent” it pays. According to published reports, show personnel have said that when properties are leased for less than 14 days, no federal tax is due on the rent.
"Makeover" Burden Not Too Taxing. For prior TaxProf Blog coverage, see:
- IRS on Tax Consequences of Extreme Makeover: Home Edition Reality TV Show (4/23/06)
- More Scholarship on Tax Consequences of Extreme Makeover: Home Edition (12/4/05)
- Student Note on Extreme Makeover (10/13/05)
- More on Extreme Makeover: Taxpayer Edition (2/2/05)
- Extreme Makeover: Taxpayer Edition (7/5/04)
- Yet More on Extreme Makeover = Extreme Taxes (5/14/04)
- More on Extreme Makeover = Extreme Taxes (5/12/04)
- Extreme Makeover = Extreme Taxes? Tax Consequences of Home-Makeover TV Shows (5/10/04)
