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The Unexpected Tax Consequences of "Extreme Makeover: Home Edition"

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The Unexpected Tax Consequences of "Extreme Makeover: Home Edition"
Jennifer M. Nasner* TABLE OF CONTENTS 481 I. INTRODUCTION .................................................................................................. 483 FAMILY ....................................................... 1I. BACKGROUND: ONE DESERVING 485 III. UNEXPECTED CONSEQUENCES ........................................................................ 486 A. Taxability ofPrizesand Awards .............................................................. 488 B. Rental underSection 280A(g) ................................................................. 490 C . Lessee Improvements ............................................................................... 492 D . A DisguisedLease? .................................................................................. 493 Dividends ................................................................ 1. Constructive 495 2. Sale/Leaseback .................................................................................. .. ... .. ... ... .. ... .. ... 497 3. Activity Engaged in For Profit? ................................ .. .. ... ... .. .. ... ... 499 4. Does a Disguised Lease Exist Here? ............................ 499 V. LEASE V.LICENSE ............................................................................................. 501 V. C ON CLUSION ..................................................................................................... I. INTRODUCTION Not many people argue with the idea of helping families in need. Most in today's society have a soft spot for helping the less fortunate and wish they could do more to help others. This is where "Extreme Makeover: Home Edition" comes in. "Home Edition" is a reality television series that involves a "run-down house, a deserving family, several opinionated designers, [and] seven days."' Home

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