This is the default prize. You receive the deed to the property, handled by our title company. You own the home outright without any mortgage.
If offered in the campaign's rules, you can choose a cash payment equal to 50% of the fair market value. This provides a significant financial alternative to owning the property.
If the home’s Fair Market Value (FMV) is $700,000, that amount is generally treated as taxable income in the year you win. We will issue the required IRS form (1099-MISC).
- Tax Liability Ballpark: Federal and state income taxes combined can often be around $260k–$290k on a $700k prize, but your specific situation will vary.
- If You Keep the Home: You are responsible for ongoing costs like property taxes, insurance, and any HOA fees from the date you take ownership. Your tax basis in the home becomes its FMV (~$700k).
- If You Take the Cash Alternative: If you choose a $350,000 cash prize, your taxable income is $350,000, not the full home value. You have no ongoing property costs.
A common way to pay the taxes on your prize is to take out a home equity loan on the house you just won. Since you own the home outright, you can borrow against its value. We can help you navigate this process with a financial institution to make it as smooth as possible, allowing you to pay the taxes without needing cash on hand.
Verify & Sign
Complete your ID verification, sign the winner’s affidavit, and fill out a W-9 tax form within the required timeframe.
Choose Your Prize Option
Decide whether you want to keep the home or take the cash alternative (if available).
Consult a Professional
Talk to a CPA or financial advisor to understand your tax obligations and plan accordingly. You may need to make estimated tax payments.
Plan for Homeownership
If you keep the home, arrange for homeowner's insurance, set up utilities, and budget for property taxes and any HOA fees.
Disclaimer: This guide is for informational purposes only and is not tax, legal, or financial advice. All sweepstakes are governed by the Official Rules. Please consult with your own professional advisors.
Have questions before you enter? Email us at support@fulhouse.io.