Explain how this is possible....and has this ever happened to another fan who caught a souvinear? Sounds to me like other people are trying to get their hands on the profit of that ball.
2007-08-08 20:35:12 · 6 answers · asked by Sneebs 4 in Business & Finance ➔ Taxes ➔ United States
I saw this on the news. If he sells the ball he'll have to pay capital gains tax on the sale. I even heard if he keeps it he could potentially have to pay tax based on the current value (which is wrong to me, he should only be taxed if he sells it). I've attached a yahoo article about how the irs might try taxing him even if he doesn't sell the ball. Imagine that!!!!
2007-08-09 02:29:15 · answer #1 · answered by Anonymous · 0⤊ 0⤋
That's the opinion of one wag. I do not share his opinion and the IRS is remaining mute on the issue. If he should sell the ball there is no question that that money would be taxable. Given the unresolved nature of Mr Bonds' "juicing" it's extremely difficult to put a true value on the ball. Should he ultimately be stripped of his record it's entirely possible that it would be relegated to the status of a curio of nominal value.
2007-08-08 23:31:20 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
I have been a tax professional for 16 years. During one of my classes a hypothetical situation was given.
You are walking down the street and find $1,000 in a paper bag. You decide to keep it. In the eyes of the IRS, you just made $1,000 of income. They want their share of it.
Now assume instead that you found a $1,000 diamond ring. The situation is no different. you are still ahead by $1,000.
If you pay the tax on the $1,000 ring and later sell it, your basis in the ring is $1,000.
This is the thinking of the IRS.
It would be no different in this situation.
2007-08-09 03:54:46 · answer #3 · answered by Mark S 5 · 0⤊ 0⤋
http://sports.yahoo.com/mlb/news?slug=ap-bonds-ball&prov=ap&type=lgns
Yes he would have to pay like $200k for taxes on the ball after catching it...too bad he couldn't just have the ball and keep it and not have to still pay the taxes..
2007-08-08 20:41:05 · answer #4 · answered by Jeremy J 4 · 1⤊ 0⤋
Don't you have to realize the money before you have to pay taxes on it?
2007-08-08 20:38:15 · answer #5 · answered by towanda 7 · 0⤊ 1⤋
cuz Berry Bonds will sue him
2007-08-08 20:36:56 · answer #6 · answered by Anonymous · 0⤊ 1⤋