St Jude Home Question

No....it's considered income, so it will be taxed at your tax rate.

Assuming a 30% tax rate (which I have a feeling this would push you up into the area of), that would be around $200k.

Which brings up an interesting scenario....You win a house worth $575,000, and you have to pay the taxes on it. Can you get a mortgage on the house to pay the taxes? After all, you don't own it yet. I seem to remember hearing that you have to pay the taxes in order to claim the prize.

Or...an even more interesting scenario...What if someone wins the $575,000 house, and owes $200k in taxes....but that person's credit isn't good enough to qualify for a mortgage (even with the equity)?
Then I guess you wont be getting the house you won lol