Mets fan could face big tax bill over Bonds' home run ball

Discussion in 'General Discussion' started by OmegaScourge, Aug 9, 2007.

  1. OmegaScourge

    OmegaScourge Custom Made TFW2005 Supporter

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    Damn, the IRS txes everything dont they...i didnt know they can tax a ball you catch.

    S**t man, they say that cause of how much the ball is worth...well, i have stuff that gained in value, so what, they gonna tax that too...BS.
     
  2. Keiichitron

    Keiichitron Not a physicist, dammit

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    next they'll start taxing all the MISB G1 transformers out there.....
     
  3. RimFyre

    RimFyre mmm,Energon Goodie

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    don't give them ideas
     
  4. Ruination04

    Ruination04 8 Years Old Since 1984!

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    That is SO ridiculous!!
     
  5. ILoveDinobot

    ILoveDinobot Arise Rodimus Prime

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    umm WTF!?
     
  6. smkspy

    smkspy is one nice fucking kitty

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    I'm the taxman hey hey I'm the taxman...
     
  7. drippy

    drippy is a freethinker.

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    As the article mentions, he's taxed on the fair market value of the item in the year of receipt (since 99.9% of all individuals are cash basis taxpayers). It's considered ordinary income.

    He's further taxed on any appreciation in the value of the item between the time he received it and the time he sells it at capital gains rates (which if he holds it for more than a year are only 15%). If the item loses value in that time span, he's allowed the capital loss...but only $3k a year.

    Seems pretty straight forward and reasonable to me.

    You think if you win the lottery you won't get taxed on the winnings?

    *edit* Your personal property that has gained in value won't be taxed on the increase because it is not considered capital property. Relax.
     
  8. SPLIT LIP

    SPLIT LIP Dry built

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    We don't have that problem in Canada. Maybe he should've told them he was Canadian. :lol 
     
  9. Lupis Convoy

    Lupis Convoy Paw Prince Veteran

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    That is just... nuts....
     
  10. drippy

    drippy is a freethinker.

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    Don't know anything about Canadian taxation or how the Canadian lottery works myself.

    However, it doesn't matter if he's Canadian or not in this case because he was in the U.S. at the time of receipt and it's considered U.S. income. The IRS (and the State of California) will both get their share regardless of his country of origin or citizenship.
     
  11. Draven

    Draven Banned

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    Catch a ball, owe a fortune. Pathetic.
     
  12. shibamura_prime

    shibamura_prime Jumpin' Jellyfish! Super Mod

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    Here's hoping that the IRS won't actually go through with this if he decides to just keep it. Poor guy.
     
  13. Ziero

    Ziero TFW2005 Supporter

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    He already confirmed that he was going to sell it, which according to that article could net him six hundred thousand dollars. With the IRS taking about two hundred thousand from that profit, he'd be left with four hundred thousand and be returned to his normal tax bracket. So he is in effect gaining at least four hundred thousand and losing nothing.
     
  14. Bryan

    Bryan ΜΟΛΩΝ ΛΑΒΕ

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    I don't think that people have trouble understanding what's going to happen. It's more just astonishment at the 'why.'

    H.R. 25 FTW.
     
  15. Ktulu

    Ktulu Whoosh TFW2005 Supporter

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    That's terrible imo :( 

    Still, I wish I had been there to catch it. I would have offered it to Todd McFarlane SUPER cheap, but with a catch: HIRE ME
     
    Last edited: Aug 9, 2007
  16. drippy

    drippy is a freethinker.

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    Waaaaaaah I won the lottery and have to pay tax!
     
  17. RKillian

    RKillian https://rktoys.myshopify.com

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    I don't think anyone's terribly surprised or upset at the prospect of being taxed on the _sale_ of the ball. If he were to keep it, however, he shouldn't be on the hook (as petty as it would be) for more than a replacement costs at the local sporting goods store. Otherwise, what the IRS would essentially be trying to do is magically create wealth out of thin air or, if you prefer, drain blood from a stone. The idea that catching a ball at the game should put one in bankruptcy is ludicrus and all who believe it is just should be committed before they can do any more damage.

    Really...if you were actually taxed on everything the government "deserves" a cut of, you'd be lucky to live as well as the average boxcar hobo does. It's not like the government would stop pissing away or outright stealing all of our money in the face of perfect enforcement.
     
  18. Optimus-JD

    Optimus-JD Team Laser Explosion!

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    Winning the lottery and catching a ball are two completely different things. If I catch a ball and put it on my mantel it is hardly contributing to my wallet. Why should I pay tax on something that is essentially a gift from the Gods? You win the lottery, that's instant money. Even if I just stick it on a shelf, it's actual cash. Now if I sell that ball, sure I should and will pay taxes at that point.
     
  19. MegaMoonMan

    MegaMoonMan www.megamoonman.com TFW2005 Supporter

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    I agree that not selling the ball should make it non-taxable, but how can it be guaranteed that he will never sell it? It can't, he could sell it under the table.

    If anything, they are saying that there is no way he would ever be able to keep it, and that's kinda sad.
     
  20. Joe Moore

    Joe Moore Is Not Jim... Administrator

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    I have to take issue with this. If there are no plans to sell it, then his monetary gain has not increased. If he sells it, then tax should be applied accordingly. And playing the lottery and winning and catching a baseball are 2 seperate things that aren't comparable. With the lottery, you are playing to expressly increase your monetary gain and worth, with this he went to a baseball and was in the right place at the right time.

    This kid could go bankrupt and/or to jail because he simply can't afford to pay tax on some made up numbers, simply because he caught a baseball. It's really a shame the kid won't be able to afford any decent legal representation.
     

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