Someone please explain this to me (baseball/taxes)

moojuice

moojuice

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Lets leave the main point of the story for another topic
http://sports.yahoo.com/mlb/news?slug=ap-bonds-halloffame&prov=ap&type=lgns
Mainly, this part (five paragraphs from the end):
Matt Murphy, a 21-year-old student and construction supervisor from New York, emerged from a scuffle holding the ball. He said he decided to sell it because he couldn't afford to pay the taxes required to keep it.
Click to expand...
What makes a baseball so expensive (therefore making taxes alot) if you haven't even sold it yet? I obviously never walked away with a ball before, but I assumed it was a free souvenier if you caught one.
 
It gets an appraised value, and that's what you have to pay taxes on. My understanding. Most balls you catch at the stadium would be worth whatever they cost to buy from the store, so it's not like you need to worry about the IRS coming after you.
 
Yeah I'm guessing with such a valuable ball MLB must have tapped him and had him sign a tax form. I had no idea they did that though. Pretty odd.

I mean the ball is worth $10 or whatever until the moment it sails over the fence and is caught by the fan. Why should he have to pay tax on the inflated value to keep it? I don't know if I really like that. If he sells it, then yeah take taxes out of what he gets but it should be treated as gains on a $0 initial value (so it's 100% profit.) Just my 2 cents.
 
Wubb,

It's actually a debated point among tax professionals here. Basically, there is a lot of argument. This could be considered a "gift" and when you took ownership, since it's over 10k, you have to pay the taxes on it. However, it could be seen closer to an inheritance, where you wouldn't have to pay the taxes until you decide to sell it.

The problem is, unless the IRS would just come out and give a clean ruling on it (which they don't seem anxious to do), you would bascially need a case to bring in front of the IRS to challenge this. It would actually be the nice thing, if someone rich caught the ball, this might happen. But, since many people who catch these balls are in no position to challenge the IRS, they just sell the ball (which, 90% of the time they would do anyway), and it isn't an issue.

If the media keeps bringing up these spots, I would fully expect the IRS to rule on this (likely that you can keep the ball without paying the taxes).
 
Hmm, thats intersting. From a legal standpoint, have there been any cases regarding this? Or has it just worked out convienetly like in lord's post?
 
That's kinda shitty. I can understand having to pay taxes on it if you sell it but if you want to keep it as a keepsake its gonna cost you?!?!? Actually I take it back that its "kinda shitty" its complete and utter bullshit.
 
[quote name='RedvsBlue']That's kinda shitty. I can understand having to pay taxes on it if you sell it but if you want to keep it as a keepsake its gonna cost you?!?!? Actually I take it back that its "kinda shitty" its complete and utter bullshit.[/QUOTE]

Even though your one of my favorite ass/thread stalkers, I agree with your comments here. So basically if I am at a Nationals game, and some player hits his 500 home run of the season or whatever, and I just happen to catch it...that 10 dollar ball not only becomes worth MORE then 10 dollars, but now the IRS or who ever wants to TAX ME to keep it!?!?!?!? Honestly if I was strapped for cash (or a college student), yea I would sell it in the hopes of paying off my bills and setting me up for years...however to be honest, I would keep it. That 10 dollar ball is now a piece of American Baseball History because some guy hit it :| I think if he donates it to a museum, he will not only have a tax write off, but also gets credit in that museum for donating it and therefore *preserves* his place in history with the ball and the player who hit it. Not only that, but the ball is well protected and the original owner doesn't have to sleep with it under his pillow every night.
 
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