I spoke with an accountant and she said " the ball is only worth what it costs at the store and until the guy sells it for whatever price, he should only be taxed on that, the original cost. So, I don't get it. Who's right?
2007-08-29 07:09:35 · 4 answers · asked by Castlebeach 3 in Business & Finance ➔ Taxes ➔ United States
There is no tax burden on it, period. It is just a baseball until he sells it. That is like saying you should be taxed on every investment you ever make because it may be worth something someday - not a real scenario. Basically he lied for no reason. Any fool knows that he is selling to make some money.
Of course any income is taxable, so ironically he is inviting taxes into his life by selling it.
2007-08-29 07:48:29 · answer #1 · answered by jamesv000 2 · 1⤊ 1⤋
There's been a lot of publicity about this guy, and he and others have made a lot of statements, but no, he only has to pay tax if and when he sells the ball, not if he keeps it.
But your accountant isn't right either - if he sells it, he'll be taxed on what he sells it for. Does your accountant think that if you bought a stock for $2 a share and sold it for $30 a share, you'd only be taxed on the $2? If so, I'd find another accountant!
2007-08-29 08:07:20 · answer #2 · answered by Judy 7 · 1⤊ 1⤋
The IRS is right, because they make the rules. And yes, the guy is basically selling it because of tax issues on the supposed "value" of the ball.
2007-08-29 07:59:40 · answer #3 · answered by Anonymous · 0⤊ 1⤋
The guy is selling it because he has no way to store, preserve it and otherwise secure it. He's going to owe a tax on his proceeds, but will be financially set for quite a while.
2007-08-29 07:17:27 · answer #4 · answered by Anonymous · 2⤊ 1⤋