How are you going to pay that kind of money if, let's say, you're unemployed? Would you see yourself forced to sell the ball because you don't have an income to pay the taxes?
2007-08-08 22:12:24 · 4 answers · asked by DODGERS FAN 6 in Business & Finance ➔ Taxes ➔ United States
Merely having the ball in your possession does not create a taxable event. As soon as you sell it, you'll have to pay taxes on it.
2007-08-08 23:18:33 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 0⤋
I assume you're refering to this article:
http://sports.yahoo.com/mlb/news?slug=ap-bonds-ball&prov=ap&type=lgns
To me this doesn't make sense, because like the answers before me the ball is more like a financial instrument (stock, bond, future, etc) you can only be taxed on the capital gain from selling the item. Yes, it'd be quite a capital gain considering the ball was free or at best $3 and he's going to sell it for over $500k most likely. I'm still trying to figure how this article considering catching the ball an immediate $500k of income.
2007-08-09 02:59:06 · answer #2 · answered by mplsundin 4 · 0⤊ 0⤋
Matthew M stated "since that is not liquid it cant be taxed". That is incorrect. Liquidity has nothing to do with whether something is taxable or not.
2007-08-09 07:11:39 · answer #3 · answered by CPA/PFS 2 · 0⤊ 0⤋
not too sure but here is a shot. that ball is estimated at $500,000. now since that is not liquid it cant be taxed. if he would sell it. irs goes after actual liquidity not cherish moments, my 2 cents
2007-08-08 22:33:26 · answer #4 · answered by Matthew M 2 · 0⤊ 1⤋