Why on earth would Matt Murphy have to pay tax on Barry Bonds ball he caught?

Question

I do not believe anyone pays taxes on balls caught at the ball park on a daily basis! This seems utterly ridiculous!

Answer 1

people are always grubbing their dirty hands for money. he earned it fair and square and should have no obligation to pay jack sh*t for it!

Answer 2

Tax would have to be paid just as you would if you stumbled across a treasure chest. The question is whether tax would be owed immediately and whether it would be taxed as ordinary income (a higher rate) or capital gains (a lower rate).

The government argument to tax it immediately is that it is the same as winning the lottery, which would be taxed as ordinary income in the year you won it. The taxpayer argument would be that you paid for a ticket to the game which gave you a basis (lets say $20) in any ball you caught. Since a ball can be considered a capital asset and have a "basis", unlike lottery cash, you can hold the ball as long as you wish and not pay taxes until sold. Under this taxpayer argument, the taxpayer would pay eventually pay tax at the capital gains rate on the difference between the sales price and the $20 basis.

That's about as simple as I can put it. It has been a subject of much debate on the American Bar Association's tax attorney messageboard. Most seem to agree with the taxpayer argument, especially considering a few years ago the IRS said they would not immediately tax the person who caught the Mark McGuire ball.

Regardless, I'd sell the thing immediately while there was still a lot of hype. Heck, maybe this was an effort to just build more hype.

Answer 3

I am perplexed as well. No one from the IRS or state agency has ever stated they would be taxed. It make for good copy so it is in the media. I can't see how it would ever get to that as every person who has ever caught those balls has sold them. There is no way to put a price on those baseballs.

It is like taxing a 12 year old because he is a good athlete and could make alot of money with his talent in a few years.

I just read the article on the guy selling the ball and he said "alot of people told me I could get taxed" the old "alot of people" which means nothing.

Some people want to say the gov is greedy and blame whomever but no IRS agent or any official tax agency has stated they would be taxed.

Answer 4

Tax could could desire to be paid in basic terms as you may in case you stumbled for the time of a treasure chest. The question is whether or no longer tax could be owed in the present day and whether it may be taxed as elementary earnings (a greater robust fee) or capital beneficial factors (a decrease fee). the government argument to tax it in the present day is that that is comparable to prevailing the lottery, which may well be taxed as elementary earnings interior the three hundred and sixty 5 days you gained it. The taxpayer argument could be which you paid for a value tag to the game which gave you a foundation (shall we are saying $20) in any ball you caught. on the grounds that a ball may well be seen a capital asset and function a "foundation", in assessment to lottery funds, you may carry the ball as long as you like and not pay taxes until offered. under this taxpayer argument, the taxpayer could pay finally pay tax on the capital beneficial factors fee on the distinction between the revenues fee and the $20 foundation. that's approximately so common as i will positioned it. that is been a concern of a lot debate on the yankee Bar affiliation's tax lawyer messageboard. maximum look to trust the taxpayer argument, exceptionally pondering some years in the past the IRS suggested they does no longer in the present day tax the guy who caught the Mark McGuire ball. Regardless, i could sell the factor in the present day whilst there became nonetheless a great style of hype. Heck, consistent with risk this became an attempt to in basic terms construct greater hype.

Answer 5

He only has to pay taxes on the sale of the ball. Nobody pays tax on any old ball because they don't sell them for ~half a million dollars. It's called a capital gain, reported on a schedule D like a stock sale. It's just the way it works, unfortunately he has no basis so it is all gain. So what, he'll get a ton of money for it as opposed to a s*it load, all just for being in the right place at the right time. I don't exactly have pity for him.

Answer 6

That ball will be worth millions when he sells it and the IRS will consider that as income and you must pay tax on any income over $600.00 a year unless you're on PA or SSI or SSD. That is why he will have to pay taxes. Its sort of like winning the Lottery.

Answer 7

I don't get this either. The IRS collects taxes on income. Until he sells the ball he doesn't have any income.

Take real estate for example. I don't pay tax to the IRS for my house until I sell it. I pay property tax to the town I live in, but ball is not "property". If you have a valuable piece of art, you don't pay tax for it hanging on your living room wall.

Answer 8

it is because the ball is valued at around $500,000, so they see that as a prize, it is like if you win a car or $500,000 that you pay taxes. so if he is keeping it he has thousands of dollars of taxes and that is alot for a college student.

as for caught balls on a daily basis, they arent worth much, they are worth maybe a dollar each.

Answer 9

Because the ball is so valuable, it increases the amount of stuff he owns. The IRS collects taxes on all the property that a person owns and that's worth at least $500,000. So, he has to pay a certain percent every so often.

Answer 10

The U.S. can tax anything now a days.

Some taxes I can understand but a BALL?

He didn't sign up for anything like the Lottery, it just came to him.

You DONT have to pay taxes for it.

P.S. Unless he sells the ball he shoudlnt have to pay anything at all. Zip Nadda, a Goose Egg.

Answer 11

If he sells the ball for more than 11,000 bucks, which he most certainly will, he will have to report it to the IRS. The tax man has to get his!