How can you be taxed on a souvenir item? For example: Barry Bonds' 756th homerun ball?

Answer 1

The IRS could take the view that it was taxable the same as if you won the lottery. Whether it is a baseball, bag of money, or treasure chest, all "accessions to wealth" are subject to income tax. The IRS could argue that he is immediately liable for the ball's value the moment it landed in his hands, and if he held the ball for a few years he would pay capital gains for the amount it appreciates during that time.

The argument for it to not be taxable immediately would be that the ball is a capital asset which he "bought" when purchased his ticket to the game. If that argument held up (which it very well could), then he would not have to pay tax until the ball is sold. Under this argument any "income" would be capital gains and would be taxed at the cheaper capital gains rate.

Regardless, I think this guy is full of [____]. The IRS would not likely require him to pay taxes immediately. It would be a publicity nightmare. People did not like the Survivor guy who the IRS went after. People do like baseball and do not understand why this guy should get a tax bill, at least until he sells it. The IRS completely backed off the guy who caught the McGuire ball a few years back, especially after congressmen started making anti-IRS speaches.

Answer 2

No **** right! The poor kid has to cough it up to get some small time coin for it (500,000.00 est bring in value),pay tax on that and then watch other rich assholes pay over a million dollars for the ball in a couple of years.

But on the other hand he will have a lot of cash to spend on hookers and blow,wich will sadly lead to an untimely death,poor guy

Answer 3

When you sell it, the gain is taxable. It would be that way regardless of what the item was -- if you sell it for more than you paid for it the difference is taxable income.

Answer 4

Barry Bond's ball should be burned.

Answer 5

at the amount of money the seller will recieve it will be taxable income