Tax Experts -"Mat Murphy's" Baseball Catch - It's I.R.A. "Catch" ?

Question

Tax Lawyer, John Berrie says "Once he took possession of
the ball, and It was his ball, It it was income to him based on
it's value as of yesterday. $600,000 with $210,000 in taxes
say experts. Tax experts. Please advise Mat Murphy on ($_$)

Answer 1

I've heard that the irs can do what people are talking about, and I have attached the yahoo article about it.

Here is an excerpt from the article.

"Even if he does not sell the ball, Murphy would still owe the taxes based on a reasonable estimate of its value, according to John Barrie, a tax lawyer with Bryan Cave LLP in New York. Capital gains taxes also could be levied in the future as the ball gains value, he said"

Answer 2

Caveat - not every tax lawyer is always correct. And remember that this pronouncement was from one person, NOT anything official from the IRS.

If Mat sells the ball, he'll pay tax on it. If he doesn't sell it, then he probably wouldn't. OK, he'll probably sell it - and historically for similar situations, that's when the tax has cut in.

Answer 3

Mr. Murphy will be paying tax on the FMV of the ball the day he possessed it. As for determining the FMV of the ball, lets leave that to the appraiser.

Answer 4

right this is my suggestion, circulate sell the ingredient. Pay the IRS what they're owed, then save up the rest. this continues to be reliable information for the guy - virtually like hitting the lottery (even after teh IRS has been paid).

Answer 5

Its only worth it if you can sell it for that. And if he holds onto it in six months it could be worth zero if the investigation of steroids goes against him. It will also diminish when he hits another homer. The home run ball that will be worth money is his last one.