"You can ruin someone's life by giving them everything they want," one Hollywood producer told the trade paper. "If you take a log cabin and replace it with a mansion, there are tax consequences to that."
The tax pain isn't limited to the initial renovation costs. Property taxes, insurance rates and utility bills all could rise too.
The producers of "Extreme Makeover" try to lower contestants' tax bills by leasing their property during the two-week renovation and filming. Those renovations are then usually tax-exempt.
I admit it: I love Extreme Makeover: Home Edition. It makes me cry like a pubescent girl. I'm glad they actually think about the consequences of the rennovation and try to alleviate them, but I always wonder how these (usually) poor families can afford the upkeep on their new homes.