Extreme Makeover uses “innovative scheme” to keep families from paying taxes.

Extreme Makeover uses “innovative scheme” to keep families from paying taxes.
As gifts from show producers, renovations done to a home on Extreme Makeover: Home Edition are taxable, and that could end up costing families who participate hundreds of thousands of dollars. But Variety reports that Endemol “has an innovative scheme to get around at least the initial tax hit. The company leases the property for the purposes of shooting the show for 14 days. Any improvements made during the lease are tax-exempt.” The producers of FOX’s Renovate My Family, Rocket Science Laboratories, “decided to pay families a lump sum to cover tax liabilities. But since the payment itself is also classified as taxable income, they adjust the amount so in the end the families owe zero.” One family featured on that show, the Rosiers, received a 1099 form showing $529,148 in income from the renovations. Variety reports that Rocket Science is “offering $215,000 to cover their tax liabilities.” The company did the same thing with Joe Millionaire 2‘s David Smith, who “won a 70-acre Texas ranch”; Rocket Science “covered the taxes on the $500,000 gift.”

Review: Married at First Sight

Marriage At First Sight

In an era of Tinder and Grindr, instant acceptance or dismissal of a potential partner, or instant sex with another body, Married at First Sight offers the thrill of watching strangers deal with the very basics of relationships.

Beyond the headline-grabbing premise, the series has turned out to be a stripped-down, authentic exploration of something very interesting. Read the full review.

about the writer

Andy Dehnart is a journalist who has covered reality television for more than 15 years and created reality blurred in 2000. A member of the Television Critics Association, his writing and criticism about television, culture, and media has appeared on NPR and in Playboy, Buzzfeed, and many other publications. Andy, 36, also directs the journalism program at Stetson University in Florida, where he teaches creative nonfiction and journalism. He has an M.F.A. in nonfiction writing and literature from Bennington College. More about reality blurred and Andy.