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Drake’s dating-show house offer raises question of who pays tax
The tax treatment depends on whether the home is handled as a gift or a prize, and where the payer lives determines which rules apply.
A report says Drake told a 23-year-old streamer, Pinkchyu (real name Lin Lamar), that he would “love to” buy her mother a house after Lamar won a dating-show tier during a Kick speed-dating stream for Stake’s ninth anniversary.
According to Yahoo Finance, the article focuses on how US tax law can treat such a home differently depending on intent. The distinction between a gift and a prize turns on the dominant motive for the transfer, and the long-standing Supreme Court framework is cited for whether the move reflects detached and disinterested generosity rather than an expectation of something in return.
The piece also notes that if Stake paid for the home instead of Drake, the arrangement could be viewed as promotional compensation that may be reportable on a 1099, changing the tax question from a gift inquiry to income treatment.
It further explains that if the home is treated as a prize, the winner could owe income tax on the house’s market value, with federal tax rates topping out at 37%, and it says Lamar lives in Texas.