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The guy who caught 756 owes the IRS $200k or more
Malenko:
I spoke to my CPA cousin, they cant tax him the value of the ball if he doesn't sell it and she has no idea where the guy in the story got the idea the IRS could. As for the capital gains tax, well that doesn't apply either, he didn't purchase the ball then later resell it for more. Lastly, where are you guys seeing baseballs for $20 ?!!? Wal*mart has them for $7.99
shardian:
--- Quote from: Malenko on August 10, 2007, 08:27:21 am ---Lastly, where are you guys seeing baseballs for $20 ?!!? Wal*mart has them for $7.99
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A professional ball costs more. You can probably buy the same type of ball that the pro's use for around $20/ball.
In college, my roomate paid $100 for a super fancy basketball at the local specialty store...and actually, it was that nice of a ball.
ChadTower:
--- Quote from: Malenko on August 10, 2007, 08:27:21 am ---I spoke to my CPA cousin, they cant tax him the value of the ball if he doesn't sell it and she has no idea where the guy in the story got the idea the IRS could. As for the capital gains tax, well that doesn't apply either, he didn't purchase the ball then later resell it for more.
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--- Quote from: the article --- "It's an expensive catch," said John Barrie, a veteran tax lawyer with Bryan Cave LLP in New York who grew up watching the Giants play at Candlestick Park. "Once he took possession of the ball and it was his ball, it was income to him based on its value as of yesterday,"
Even if he does not sell the ball, Murphy would still owe the taxes based on a reasonable estimate of its value, according to Barrie. Capital gains taxes also could be levied in the future as the ball gains value, he said.
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Malenko:
--- Quote from: ChadTower on August 10, 2007, 08:42:09 am ---
--- Quote from: Malenko on August 10, 2007, 08:27:21 am ---I spoke to my CPA cousin, they cant tax him the value of the ball if he doesn't sell it and she has no idea where the guy in the story got the idea the IRS could. As for the capital gains tax, well that doesn't apply either, he didn't purchase the ball then later resell it for more.
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--- Quote from: the article --- "It's an expensive catch," said John Barrie, a veteran tax lawyer with Bryan Cave LLP in New York who grew up watching the Giants play at Candlestick Park. "Once he took possession of the ball and it was his ball, it was income to him based on its value as of yesterday,"
Even if he does not sell the ball, Murphy would still owe the taxes based on a reasonable estimate of its value, according to Barrie. Capital gains taxes also could be levied in the future as the ball gains value, he said.
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yeah I got all that, but the IRS cant tax him until there is an actual sale of the ball, I mean we all know hes going to sell it but until he takes the money he isnt responsible for a tax on it. Also, the capital gains tax only applies to whomever buys the ball, if they resell it for more later.
My cousin raised the BS flag on catching the ball is income, because its not, selling the ball is the income.
Samstag:
--- Quote from: Malenko on August 10, 2007, 08:56:09 am ---My cousin raised the BS flag on catching the ball is income, because its not, selling the ball is the income.
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Your cousin would be wrong on that. Acquiring an item that has a large material value is income. Ask anyone who's ever won a car.
What's in question is whether an item can have a large material value based entirely on the opinion of "experts" and never proven in a market situation.
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