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The guy who caught 756 owes the IRS $200k or more

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shardian:

--- Quote from: Jouster on August 10, 2007, 11:38:57 am ---Simple solution...sell it to his wife or friend for a dollar...then buy it back for $2...now the ball has a value.

Jouster

--- End quote ---

I would recommend the same, but it just don't work that way, and for obvious reasons. If you are even given a car, you still have to pay taxes on it, which is fine because the car has an obvious value.
Since we are on cars, here is an interesting situation. Lets say for instance that you own a car that Elvis pressley drove. You would pay property tax on that car based on the make,model, and year. You would not pay extra property tax because Elvis owned and drove it, even though a collector would pay you well above market value for the car. Now when and if you sold the car for above and beyond market value, you would pay capital gains tax.
That is more like the situation we have here: The ball has a set value compared to other balls. It has a worth of $20 or so regardless of who hit it. Now if the guy sells the ball to an idiot willing to spend hundreds of thousands of dollars, then he would pay the gains tax on that.

And to top it off, that baseball doesn't even fall into a category you have to report on personal property forms.

I am fortunate though regardless of how the IRS takes this because my 1987 Topps Barry Bonds rookie card still new in box is still work jack crap. ;D

ChadTower:

You would pay additional taxes on that car if you wanted to get additional insurance to cover the collectable value of it.  To get the insurance you'd have to get it professionally appraised, and that appraisal would trigger additional taxes if the DMV were notified  (sometimes they are, sometimes they are not).

MikeQ:
Depends on the state.  In Florida, you pay taxes on the amount listed on the bill of sale,  not any appraised value.  I was given a car in college, presented a bill of sale to the DMV for $0.0 and paid no taxes.

ChadTower:

Right, but that's an average car, not one with collectable value above blue book.

And usually those $0 or $1 sales are specific exceptions for passing a car to family member... in MA, you used to be able to sell a car for $1 with no taxes to a relative.  Can't do that anymore, though.

shardian:

--- Quote from: ChadTower on August 10, 2007, 12:12:59 pm ---
Right, but that's an average car, not one with collectable value above blue book.

And usually those $0 or $1 sales are specific exceptions for passing a car to family member... in MA, you used to be able to sell a car for $1 with no taxes to a relative.  Can't do that anymore, though.

--- End quote ---

Yeah, we were given a car and I found out the hard way that you still pay sales tax even when its free. :angry:

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