Guy who caught Bonds' HR has to pay taxes, why doesn't everyone have to pay for every valuable collectibles?

Answer 1

This is another false rumor. He'll pay taxes when he sells it, just like anyone else does when they sell an item for a profit. If you read the articles carefully, nowhere will you find any notice that the IRS has said he owes taxes, just some people looking to get their names in the paper.

Answer 2

Everyone does have to pay tax on all income. This is the same as if you found money or buried treasure. Once you take receipt of an item of value you have income and must pay tax. The Internal Revenue Code (IRC) in Section 61 states that "gross income means all income from whatever source derived". Even if it's considered a prize then it falls under IRC Section 74 which says "gross income includes amounts received as prizes and awards". The ball has value and therefore is income, if the gentleman had caught a $500,000 bill no one would question this and the ball is no different. If he keeps it and pays the tax then he may also incur capital gain tax if he sells it later and it has increased in value.

Answer 3

He will not have to pay tax on it until it is sold....

The media found an idiot that knew about an attempt in the past to try this scheme. However, those in charge in the IRS squashed this very quickly.

It is just a urban myth.

Oh...by the way Eleventh Toe is full of it. There is no such thing as a Federal Luxury tax. That is in Monopoly.

Answer 4

He only has to pay tax on it if he sells it. If it was a prize he won he would have had to pay a tax on the value of it.

Answer 5

Because the IRS knows who is....trying to sell a collectible like that is bound to get the IRS interested...especially when it's splashed all over the news.

Answer 6

It is not a rumor. There is a federal luxury tax. He actually does have to pay luxury tax on it even if he doesn't sell it. Yes, it sounds extremely ridiculous in a free market democratic society doesn't it?