http://sports.yahoo.com/mlb/news?slug=ap-bondsball082207&prov=yhoo&type=lgns
He did not win it like the lottery or anything. It should be his to keep free of charge. People don't pay on other balls they have. This is crazy to me. Can someone explain the law on this why would he have to pay
2007-08-22 08:50:06 · 17 answers · asked by Big Daddy R 7 in Politics & Government ➔ Law & Ethics
it's a new law that recently went into effect - like how celebrities are starting to get taxed for all the free crap they get at award shows. they consider it to be part of your income for the year, so they tax it just like your work income gets taxed. lame-o but that's lawmakers for you
2007-08-22 08:55:24 · answer #1 · answered by sarah 2 · 1⤊ 0⤋
I'm no lawyer or CPA, but here's my take on it:
He has acquired an asset that has a tangible value. That value is subject to capital gains tax, just as if he bought a stock that went up in value. In the case of the stock, the capital gain is the difference between the purchase price and the new, higher price. In the case of the ball, the capital gain is the estimated value of the ball, since he didn't pay a thing to get it except the cost of the ticket to get into the game.
Yeah, it's screwy, but that's the way the tax law is written.
2007-08-22 15:55:43 · answer #2 · answered by Ralfcoder 7 · 1⤊ 0⤋
Because the law is vague enough that any "taxable income" can be taken. If you find a quarter in a couch you supposed to report it on your taxes otherwise it can be tax evasion. Pretty much they are just pushing this one because of the high value of the ball.
2007-08-22 15:56:26 · answer #3 · answered by TheMadChemist 2 · 0⤊ 0⤋
Yeah, I don't understand that either. If I had it, I would make the IRS prove I had it. I mean, how are they going to know? You have a mortgage on your house, you register your vehicle, so taxing those I understand, because there is a paper trail that says you have them. But a baseball? How would they know? Until you sell it, and you get that big pay day, they are going to have no proof that you own it. If I'm wrong, somebody please let me know why.
2007-08-22 15:56:09 · answer #4 · answered by RS 4 · 0⤊ 0⤋
because barry bonds broke a record which is a special thing. so that ball is worth alot. hey mind as well its profit and thats when you get taxed. other balls are just useless nothing special about that. u just got a home run ball.you caught a barry bonds ball in which he jsut broke the record $$
2007-08-22 16:03:50 · answer #5 · answered by IsItSoo 2 · 0⤊ 0⤋
Our government wants money. They tax us to death. Ever heard of lottery tax or inheritance tax? He has an asset so he is going to be taxed on it's value. It's a shame too...
2007-08-22 18:25:11 · answer #6 · answered by Shay 4 · 0⤊ 0⤋
Most other balls are worth less than 5 bucks.
2007-08-22 15:52:59 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Uh, let me put it another way. Its a publicly recorded event. Half the US probably can attest to the fact that they saw him receive it.
'nuff said.
2007-08-22 15:58:36 · answer #8 · answered by bpgagirl22 5 · 0⤊ 0⤋
He recieved a half million dollar item. That is income. Income is subject to taxation.
2007-08-22 15:54:52 · answer #9 · answered by Ricky T 6 · 1⤊ 0⤋
He wouldn't pay taxes on the ball if he keeps it. If he sells it, he would owe capital gains.
2007-08-22 15:53:21 · answer #10 · answered by kattsmeow 7 · 0⤊ 1⤋