Shouldn't he get taxed after he sells it? Is it fair for him to pay taxes on a ball the IRS feels is worth 500K today that could be worth only 10K in 10 years (if someone else like A-rod beats his record?)
I think the guy should have kept the ball and fight the IRS in court!!!
2007-09-02 10:50:53 · 5 answers · asked by Rolly 2 in Business & Finance ➔ Taxes ➔ United States
Yes Ronald but you can easily determine the fair market value of a new lexus but no one knows what the ball will ultimately sell for. It could be a million dollars or 10K.
The intrinsic value of a baseball should be about one dollar!!
2007-09-02 12:17:19 · update #1
A similar question was posted a couple of weeks ago when Bonds hit number 756. The concensus of Yahoo answerers was that there was no recognition of income on catching the ball, the recognition event would be the sale of the ball. The IRS position is as I have stated it.
2007-09-02 14:44:19 · answer #1 · answered by mattapan26 7 · 1⤊ 0⤋
He didn't, although he will if and when he sells it.
If you read the articles closely, you will see that it wasn't the IRS saying he owed tax on it, it was some lawyer who apparently wanted to see his name in the paper - and succeeded. The IRS has made no statement, nor apparently has anyone involved asked them to.
In an earlier similar situation, the IRS Commissioner (top guy) came out with an official statement that the idea that the person who caught the ball would be taxed was crazy, and not true.
2007-09-02 22:05:59 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
If the "poor guy" had won a new Lexus given away at the ballpark because his ticket was chosen in a giveaway, he would have to pay taxes on the car (even though he never sold the car and realized any "money"). Why do you think a ball that might be worth $500,000 is any different?
2007-09-02 18:00:20 · answer #3 · answered by skipper 7 · 1⤊ 1⤋
Any time you win anything you have to pay taxes. There is a tax specifically for winning prizes that are not cash. Then, when it is time to pay the tax, you have to claim it as winnings AND income tax for the year. Most people who win fabulous prizes end up selling them just to pay the taxes. It really is sad when you think about it. As the saying goes, "there is no such thing as a free lunch."
2007-09-02 19:24:37 · answer #4 · answered by xila31 2 · 0⤊ 1⤋
He does not until he sells it
2007-09-02 17:53:56 · answer #5 · answered by Anonymous · 0⤊ 1⤋