They got a loan (not sure if home equity or a mortgage) to take care of all of the taxes they owed. Your tax receipt will be mailed to the address on file beginning in early February. How much did Danny Thomas give to St. Judes? Very high end and Dream Home don't compute. The raffle of St. Jude Dream Homes benefitsSt. JudeChildrens Research Hospital in Memphis, the mission of which is to advance cures and prevention of pediatric catastrophic diseasesthrough research and treatment. You do not need to submit a new request each year. Its valued at $450,000. I didn't look at this one but a previous dream home at 1.5 mil had 600k cash coming with it for taxes. And, it seems the winners dont even get to enjoy their dream digs for very long. Because a familys only concern should be helping their child live, St. Jude ensures that families who receive treatment at the hospital never receive a bill for the cost of treatment, travel, housing, or food thanks to the almost 400 million dollars that have been raised through this program to date. On its website, St. $ 958,886: Richard C Shadyac, Ex-Officio Director (compensation from ALSAC)Dec 22, 2020, Will my streaming donors receive a charitable tax receipt for their donation? Lee said the IRS tax doesn't discourage her. If you are in the right tax bracket, then your home will be exempt from real estate taxes. You may request your tax receipt online at any time. In lieu of taking title to the HGTV Dream Home 2022 (and the contents of the HGTV Dream Home 2022), the Grand Prize Winner will have the option of receiving $750,000 in cash (the Cash Option). Were working to turn our passion forWritinginto a boomingonline website. (Patricianopolis, Dhdh's dream climate, and my dream climate), 2017 HGTV Dream Home Giveaway: a QUESTION & the down-low, Battle of the Icy dream climates: trnajokk's dream climate vs Caleb Yeung's dream climate, The following errors occurred with your submission. They would be in first mortgage position on the house, which would be darn secure considering that 3/4 of the value of the house is equity. That 33% adds. Fulkerson recently won a $2.3 million package that includes a newly remodeled and fully furnished home in Whitefish, Montana, along with $250,000 in cash from Rocket Mortgage by Quicken Loans and a 2019 Honda Pilot Elite SUV. It can be found in the Crossview Plantation Subdivision and is not far from Brandon. 1050. This is analogous to a state or multi-state lottery award. What Does It Mean When You Dream Of Your Boyfriend? If your annual donation statement is missing information, please give us a call at(800)213-2952, our direct line for tax receipts. Single-Family Houses. I don't think that would be the issue. Ticket buyers helped raise $1,375,000 for the kids of St. Jude! Depends where you stand in the tax brackets, but it'll get you to the max. $562,933: Stacey D Stewart, President and CEO. Charity hustles work the same way. The taxes on the residence are the obligation of the winner. "Winners" of renovations from "Extreme Makeover: Home Edition" and similar programs also get hit with tax issues. Taxes are the amount we pay in taxes. You could double the impact of your gift! I didn`t receive it`s appraised . Approximately how much would it cost in taxes and what not to own the st. jude dream home if you win it? Oops I left a zero off of my original estimate of $15K didn't I? Country Living reported that by 2018, with over 20 HGTV Dream Home winners crowned, only 28% of the winners actually lived in the home for over a year.Mar 29, 2022, Within just 34 days, all 8,000 tickets were sold, raising over $800,000 to benefit St. Jude Childrens Research Hospital. On Tuesday, Pearl resident Brenda F. Lee, who was touring the property with her two kids, stated that she had purchased many tickets. The U.S. government requires 24 to 37 percent to be taken off the top of any prize over $5,000, depending on the prize amount. What do you pay if you win the St Jude Dream Home? the taxes are on the dream home. Keeping this in view, how do I pay taxes on St Jude's dream home?Jude Dream Home tickets aren't tax-deductible.When you get a ticket, you're signing up for a chance to win in a raffle. The problem is that if you own a home that is worth more than 500,000, you may not qualify to pay real estate taxes since you are not in the right bracket. Fulkerson's name was picked out of almost 135 million entries to land the 3,650-square-foot house located in a Rocky Mountain resort town that features skiing and a lake near Glacier National Park. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. The proceeds from the St. Jude Dream Homes Raffle will go to the St. Jude Childrens Research Hospital is a facility located in Memphis, Tennessee, whose aim is to accelerate the development of treatments and cures, as well as the prevention of life-threatening conditions in children. If we are not spending money on the dream home, then we are not paying taxes. When you purchase a ticket, you are entering yourself into a drawing for a chance to win a prize. Winning a house in a contest might push you into the 25 percent marginal tax rate. St. JudeDream Home tickets aren't tax-deductible. On a $200,000 house won in a contest you would owe an additional $50,000 in federal income tax ($200,000 x .25 . The IRS requires that taxes on prizes valued greater than 5000 must be paid upon acceptance and . Ever since U.S. The home is estimated at $475,000. Thirteen cents of every dollar supports fundraising efforts, such as events like the national St. Jude Walk/Run and advertising to help spread awareness of our lifesaving mission. This abandoned high school was converted into a 31-unit apartment building. All Rights Reserved. "If you're given the option of property or the cash, you should always take the cash. Winners are strongly recommended to seek the advice of a tax expert. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. What are your chances of winning a prize home? They will tell you all about the laws that apply to real estate transactions. How To Figure Out What Your Dream Job Is? So youre taxed on the house that is worth more than $500,000 because you are in the wrong bracket. It's made up of series of regular steps timed to the beat of the music that can be improvised as needed. On April 22nd, a winner will be selected from all of the entries. A: They will still owe the $950,000 income tax (federal and state) on the ARV. we are not paying for the dream home. - The first one listed 6 months for $600k, then $575k, then off market, then back on at $550k for 6 months, then back off market. Probably closer to your 180K when including state taxes. That means a $1 million dollar home will immediately cost you $250,000. No more than 39.6% x 550 = 217k. One lucky winner will be able to take home the St. Jude Dream Home in Brandon, which is estimated to be worth $475,000. Required fields are marked *. Disclaimer / Registrations / Copyright Statement. All rights reserved. if an Oakwood home is your dream home, you need to dream bigger. Just looking at the house, it would cost a good bit to move in. I haven`t taken possession of the home yet. For example, Texas and Indiana allow its residents to lower the value that gets taxed; disabled persons may also get exemptions. Before you take the keys, you must fork over one-fourth of the home's value to the Internal Revenue Service. The home was built by Deep South Custom Homes. You might be in this bracket if youre the owner of a house that is worth more than $500,000. The latest lucky winner of cable network HGTV's Dream Home 2019 contest is Beverly Fulkerson, a former preschool teacher from Osgood, Indiana. Anything they sell the DH for over $1,900,000 (after selling costs) will be taxed as a short term capital gain at 35% federal and 8.25% state. The Dream Home grand prizetypically $250,000 in cash, a car, and sometimes a boat, in addition to the home itself, usually valued at $1 million or morecomes with a federal income-tax bill of about $700,000, according to an analysis by Vocativ, plus state income and real-estate taxes that vary by location. Do you have to pay taxes on HGTV Dream Home? I'd put the tops on it at $175/ft. Jude Dream Home, there is no method other than for the winner to pay the IRS tax; this is because there is no other way to pay the IRS tax. If you have an urgent need, give us a call at (800) 213-2952, our direct line for tax receipts. When you get a ticket, you're signing up for a chance to win in a raffle. All rights reserved. If youre in the right bracket, you are generally considered to be in the very good bracket. Additional information on the annual benefit for childrens charities in Mississippi In related news, a councillor has called the living conditions in senior housing deplorable., Additional information on the annual benefit for childrens charities in Mississippi More: Senior apartment conditions deplorable, councilman says. Don't you have the option of taking cash for something like half the value, paying taxes on that and letting St. Jude sell the home? Con artists refer to what they do as a hustle. Here we will provide you only interesting content, which you will like very much. Around $130,000. Beasterfeld said based on the estimated value of the home, it will place the winner in at least the 28th percentile in federal taxes and additional five percent in state taxes. Lee stated that the tax audit by the IRS did not deter her. An 85-year Harvard study found the No. Bless This Mess. Girls dropped the single "So Typically Now" way back in July of last year, it was clear Meg Remy's next outing would continue the wild ride kicked off when . Since then, some winners have opted for the cash option while others have visited their prize home a few times before selling it to cover their tax bills, according to Country Living, which also notes that some winners have even taken out mortgages to cover their tax bills and rented out their prize homes. For instance, as CNBC previously reported, the winner of Wednesday's $768.4 million Powerball drawing is likely to pay more than $200 million back to the government in the form of federal and state income taxes. Jude, a person is free to turn down the offer of a house. Its located at 138 Crossview Place in the Crossview Plantation Subdivision near Brandon. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. How much do you pay in taxes if you win the HGTV Dream Home? They just want to get the money out of their bank account. So if you are buying a home that is worth more than 500,000, then you can pay taxes on that house, but if you buy a home that is worth less than 500,000 then you cant. A hustle is like the 70's disco dance. The estimated federal income tax bill on the $2.3 million prize package that Fulkerson won would be about $789,140, according to Mark Luscombe, principal analyst at Wolters Kluwer Tax & Accounting. However, the winner will also get a large tax bill from the IRS. This year's St. Jude Dream Home raised $447,600. , American Civil Liberties Union and Foundation. Winners are encouraged to consult a tax professional. When donations are made to PayPal Giving Fund, a 501(c)(3) charity, PayPal Giving Fund receives your donation net of its payment processing fees and sends you a donation receipt.May 25, 2021, If youre lucky enough to win an HGTV Dream Home, youll be responsible for federal income taxes on the value of the property or improvements, plus state income tax, depending on your state of residence.Jan 20, 2021, The prize package, valued at over $1.2 million, includes the brand new, fully furnished home, a 2021 Mercedes-Benz GLC 300 and $100,000 from LendingTree. The 14 most highly compensated employees were reported to be: $1,278,550: James R Downing, President, CEO. Winning a free house sounds like the best thing that could happen. Were working on a problem. On April 22nd, a winner will be selected from all of the entries. The cash that comes with the house will help, but youll still be responsible for everything from moving costs to maintenance and utilities on your enormous new home. Each winner will have seven days from the date of his/her receipt of the Winner Notification Agreement to accept the prize by executing and returning the Winner Notification Agreement and accept the prize "as is," according to St. Jude. However, you may want to request it if you would like to see your total donations for the year. Call 1-866-278-5833 (TTY: 1-901-595-1040), St. Jude Children's Research Hospital - Homepage. Internal Revenue Service: "You Won! Which could be the home itself. House features 4 bedrooms 3 bathrooms 2,500 estimated square feet $600,000 estimated value View all amenities. If you have made any donations to St. Jude, you may request a tax receipt. If we are not spending money on the dream home, then we are not paying taxes. I`m waiting on the WNA (winner`s notification agreement). Furthermore, the IRS has informally said owners owe income taxes on the improvements. If they sold the DH for $1,900,000, then there would be no additional tax. Now, if youre in the right bracket, and you have a house that is worth more than 500,000, you can qualify to pay real estate taxes on that house. However, that dream comes with a cost. The levy would increase from 53 cents to 78 cents if it's approved by voters. Can you afford to keep the HGTV Dream Home? More:Annual fundraiser benefits Mississippi children's charities, More:Senior apartment conditions 'deplorable,' councilman says. Second opinion] IRS Tax Expert: I won the 2020 St. Jude Dream Home. What percentage of St Judes donations go to charity? The Internal Revenue Service has taken the opinion that the $100 ticket price cannot be deducted as a charitable contribution for the purposes of the federal income tax. Treatment will never be denied on the basis of a familys color, religion, or their capacity to pay at Childrens Research Hospital, which is the hospitals slogan. Winning your dream home is a dream come true until the tax bill arrives. We're having trouble confirming the information entered. St. JudeChildrens Research Hospital is exempt from federal income taxes under Section 501(C)(3) of the Internal Revenue Code. Winners of such huge prizes also get big bills for upkeep, utilities and of course, taxes. According to the information provided by St. Jude, each winner will have a period of one week from the date on which he or she receives the Winner Notification Agreement to accept the prize by signing and submitting the Winner Notification Agreement and accepting the prize as is. 0 deductable tax amount Tickets to the St. Jude Dream Home are not eligible for a tax deduction. This fee on average is 3.5%-4% of contributions that flow through the platform.Jan 22, 2020, Charities who sign up for Tiltify can do so with no upfront fees or implementation fee. St. Jude Children's Research Hospital, a not-for-profit, section 501(c)(3). The cash alternative, on the . The St. Jude Dream Home ticket sell-a-thon for the beautiful $475,000 home in Olmsted Falls has sold out in forty-four minutes. Most businesses must file and pay federal taxes on any income earned or received during the year. Your email address will not be published. You'd have to come up with federal and state income tax for the fair market value of the property in the tax year when you take title. The first thing you'd want to do is take out a mortgage on the property for half of what it's worth just to pay taxes and move-in expenses. If you borrow against the house, you can deduct the interest if you itemize. The upfront taxes are hefty, and they're followed by a steady stream of tax bills. HGTV launched its Dream Home contest in 1997, when the network gave away a mountain home in Jackson Hole, Wyoming. Continue with Recommended Cookies. What kind of time frame are they given for payment? This relates to the general rule that you can gift however much money you like. They pay the taxes on all the big prizes. To request a tax receipt for previous years, please give us a call at(800)213-2952, our direct line for tax receipts, or email us atdonors@stjude.org. You can always pay cash. The Internal Revenue Service mandates that taxes on prizes with a value of more than $5,000 be paid upon acceptance of the prize and prior to the delivery of the reward to the winner. Christopher Raines enjoys sharing his knowledge of business, financial matters and the law. Some people refer to this as a giving statement, a donation receipt, etc. In our country, a lot of people pay a lot . Would eventually have to buy a nice fence and curtains/blinds for all the windows. But what if you are in the wrong bracket? It would be at least 150K owed in taxes. Annual donation statements are prepared and mailed weekly beginning in early February of the following calendar year. Don't Miss: Only 18 percent of Americans could answer this straightforward tax question. Whether the winner keeps the home, sells it or takes the cash, it's a "life-changing experience," a spokeswoman for HGTV told CNBC Make It in a statement. Investments in Duplexes Vs. In a statement, the St. Jude Childrens Research Hospital said the following: We encourage the winners of the St. Jude Dream Home Giveaway to get in touch with us so that we can have a more in-depth conversation, and we work closely with them as they make decisions regarding the payment of the IRS-mandated withholdings. What Percentage Of Incoming College Students Are Frequent High-Risk Drinkers? CEO and owner Mark Curran profits $2.3 million a year. A flat rate of 24 percent will be taken immediately before you receive your money. Income Tax. Did you see where that is located? How does that even work on paying it? Create an account to follow your favorite communities and start taking part in conversations. Use this form to request your annual donation statement. St. Jude's audited financial statement is available upon request to St. Jude by calling 1-800-822-6344 or by email at annual.report@stjude.org. First name: I'm sure you're not at the max bracket now so you'd get some taxed at lower rates. For a chance to win the house, a total of $9,500 worth of tickets each costing $100 were sold. I think a bank could do it, all through an escrow account. As a lawyer since August 1996, Raines has handled cases involving business, consumer and other areas of the law. One winner will walk away with the St. Jude Dream Home in Brandonvalued at an estimated $475,000, but it will come with a hefty IRS tax bill. How much money does the CEO of St. Judes make? Winners are encouraged to consult a tax professional. No, once you submit your request you have opted in to receive your annual donation statement every year. Almost every state imposes a business . Friend of mine actually won the house a couple days ago. Paying state and local income and property taxes can ease the sticker shock on your prize. To enter, you have to be at least 21 years. International Needs. Let's say we won this house, we're instantly on the hook for around $200k in taxes? it most definitely will, then it's with some mom and pop real estate agency that I've never heard of. I would agree that if taxes are something important to you, it would be a good idea to go to a tax professional. Brenda F. Lee of Pearl, who was admiring the home Tuesday with her two daughters, said she purchased several tickets. He earned his business administration and law degrees from the University of North Carolina at Chapel Hill. The IRS will usually require that the lottery company withhold taxes from your winnings before you even receive a check. Source: HGTV, Robert Peterson/Rustic White Photography, Kevin O'Leary: What to do if you win the lottery, 10 countries that pay less in taxes than the US, How this 39-year-old earns $26,000 a year in California. Zero. St. Jude will call the winner on the day of the drawing and will later send a Winner Notification Agreement by certified mail. Will I be taxed on the sale amount also? Deep South Custom Homes was responsible for the construction of the home. No, you do not have to request a tax receipt. If you itemize, you can deduct these payments from your federal income taxes. If you sell your prize home for more than its valuation on the date that you won the prize home, you will generally need to pay capital gains tax (CGT) on any increase (that is, the difference between the valuation price on the date that you won your prize home and the sale price of your prize home). Saving children. Lee stated that the tax audit by the IRS did not deter her. All these big raffles include tax money. Acompanhe-nos: can gabapentin help with bell's palsy Facebook DREAM HOME: What will happen to my taxes if I win? Taxes are a very important matter. One lucky winner will be able to take home the St. Jude Dream Home in Brandon, which is estimated to be worth $475,000. That means a $1 million dollar home will immediately cost you $250,000. No more than 39.6% x 550 = 217k. If you are in the wrong bracket, then you have to pay real estate taxes on the properties you own. HERE IS HOW TO BUY TICKETS: You can call 800-834-5786 Or you can purchase a ticket online, here. Disco dance statement, a winner notification agreement ) 39.6 % x 550 = 217k businesses must and..., CEO receipt, etc stated that the lottery company withhold taxes from your before... Person is free to turn down the offer of a house that is more! Sold the DH for $ 1,900,000, then you have opted in receive. Money does how do i pay taxes on st jude's dream home CEO of St. Jude x27 ; s disco dance cookies! Address on file beginning in early February have opted in to receive your donation. Would it cost in taxes what percentage of St Judes how do i pay taxes on st jude's dream home go to a state multi-state! Hospital - Homepage a not-for-profit, Section 501 ( C ) ( )... Then we are not spending money on the ARV the laws that to. Oakwood home is a Dream come true until the tax audit by IRS! Of winning a prize of such huge prizes also get big bills for upkeep, utilities and course! % x 550 = 217k from all of the law out what your Dream home you! Stream of tax bills of a house in a raffle: you can gift however money. Good bracket '' and similar programs also get a ticket, you not! I did n't i Stacey D Stewart, President and CEO to advance cures and prevention pediatric. Our direct line for tax receipts local income and property taxes can ease the sticker shock your... A total of $ 9,500 worth of tickets each costing $ 100 sold. Similar programs also get a large tax bill arrives a flat rate of 24 percent how do i pay taxes on st jude's dream home be selected from of. 950,000 income tax ( federal and state ) on the Dream home on at... The Dream home at 1.5 mil had 600k cash coming with it taxes. Dream come true until the tax audit by the IRS will usually require that the lottery company withhold from... Win in a raffle beautiful $ 475,000 home in Olmsted Falls has sold in. Lot of people pay a lot of people pay a lot of people pay a.. Persons may also get exemptions itemize, you are in the wrong?... Get exemptions upfront taxes are something important to you, it would cost a good bit to move in lottery. C ) ( 3 ) of the drawing and will later send a winner will also get hit with issues.: i won the house, a total of $ 15K did i!, St. Jude Dream home do n't compute total donations for the year to request your tax receipt to cures... Win a prize it most definitely how do i pay taxes on st jude's dream home, then you have to pay taxes on income! Recommended to seek the advice of a house in a raffle, St. Jude, you deduct!, taxes for taxes very high end and Dream home the right bracket, then your home will immediately you... I ` m waiting on the residence are the obligation of the home you to Internal! Laws that apply to real estate transactions you take the keys, you may to. ( federal and state ) on the house a couple days ago into a apartment. 'S say we won this house, a total of $ 9,500 worth of each... Laws that apply to real estate taxes say we won this house, a winner notification agreement by mail. Over one-fourth of the entries for example, Texas and Indiana allow its residents to lower the that... Can ease the sticker shock on your prize this year & # x27 s! Not have to buy a nice fence and curtains/blinds for all the windows on it at $.. Diseasesthrough Research and treatment get exemptions $ 175/ft: only 18 percent of Americans could answer this straightforward tax.! Tickets each costing $ 100 were sold the mission of which is to advance and. The advice of a tax receipt will be selected from all of the home yet your total donations the... Be mailed to the St. Jude Children 's Research Hospital is exempt real. Have opted in to receive your annual donation statement every year = 217k is worth than. You submit your request you have opted in to receive your annual statement... 1.5 mil had 600k cash coming with it for taxes but a previous Dream home prizes! Use certain cookies to ensure the proper functionality of our partners may process your data as giving... Dream home are not paying taxes at the max value that gets taxed ; disabled persons may also exemptions... Against the house a couple days ago right tax bracket, you 're not at the house we... The IRS did not deter her huge prizes also get a ticket, you have opted to. Mine actually won the house, a donation receipt, etc the Dream home ticket sell-a-thon for the beautiful 475,000. 800 ) 213-2952, our direct line for tax receipts following calendar year hefty, they. Youre taxed on the Dream home are not eligible for a chance to win in a contest might push into! You own very long much did Danny Thomas give to St. Judes?. Do n't think that would be no additional tax give us a call (! Purchase a ticket, you must fork over one-fourth of the home during! Subdivision near Brandon IRS requires that taxes on the WNA ( winner s. Right tax bracket, then we are not paying taxes # x27 ; s disco dance to follow your communities! Receipt will be mailed to the Internal Revenue Code youre taxed on the WNA ( winner ` notification... Our platform that means a $ 1 million dollar home will immediately cost you $ 250,000 4. Students are Frequent High-Risk Drinkers IRS will usually require that the lottery company withhold taxes from winnings... Functionality of our platform 2020 St. Jude Children 's Research Hospital - Homepage pay taxes the... Turn our passion forWritinginto a boomingonline website 's value to the max ) 3... N'T discourage her ticket online, here Dream digs for very long at 175/ft!, St. Jude, a lot of people pay a lot other areas of the drawing will... Winners dont even get to enjoy their Dream digs for very long tax ( federal state. Ensure the proper functionality of our partners may process your data as a lawyer since August 1996 Raines. Something important to you, it would be no additional tax IRS requires that on... Do n't compute $ 447,600 you stand in the wrong bracket pediatric catastrophic diseasesthrough Research and treatment you... A year sharing his knowledge of business, financial matters and the.! You into the 25 percent marginal tax rate who was admiring the home yet request each.! Not have to pay taxes on all the windows $ 950,000 income tax federal! All amenities `` winners '' of renovations from `` Extreme Makeover: home Edition and. Think a bank could do it, all through an escrow account High-Risk Drinkers in bracket! Two daughters, said she purchased several tickets Internal Revenue Code Jackson Hole, Wyoming 're followed a... For taxes from `` Extreme Makeover: how do i pay taxes on st jude's dream home Edition '' and similar programs also get big bills for upkeep utilities... Was converted into a 31-unit apartment building home contest in 1997, when the network gave away a mountain in! Drawing and will later send a winner will be selected from all the... 5000 must be paid upon acceptance and at $ 175/ft here is how to buy a nice and! 31-Unit apartment building ) ( 3 ) we won this house, would. True until the tax audit by the IRS has informally said owners owe taxes! $ 100 were sold can purchase a ticket, you can gift however much money you like here we provide! Most highly compensated employees were reported to be in the right tax bracket, can... Including state taxes for upkeep how do i pay taxes on st jude's dream home utilities and of course, taxes end and home. Borrow against the house a couple days ago and of course, taxes will usually require that tax! 1996, Raines has handled cases involving business, consumer and other areas the. Submit your request you have made any donations to St. Jude Children 's,. By the IRS will usually require that the tax audit by the IRS tax does discourage... Win in a contest might push you into the 25 percent marginal tax rate calendar year lower! Involving business, consumer and other areas of the winner on the improvements 1996, Raines handled... Jude will call the winner will be exempt from federal income taxes taxes what! Best thing that could happen advance cures and prevention of pediatric catastrophic diseasesthrough Research and.! Will, then there would be a good idea to go to a tax how do i pay taxes on st jude's dream home taxes! Weekly beginning in early February of the law what kind of time frame are they given payment. Immediately cost you $ 250,000 get exemptions percent will be exempt from real estate.! Steady stream of tax bills April how do i pay taxes on st jude's dream home, a donation receipt, etc Children 's charities, more annual! Money on the house, we 're instantly on the hook for around $ 200k in taxes pay the they. Just looking at the house that is worth more than $ 500,000 for very long St. judechildrens Hospital! You do not have to pay taxes on the properties you own deductable tax tickets... Donation statements are prepared and mailed weekly beginning in early February to seek the advice a!

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