Why would the man that caught BB's 756th ball be taxed just for holding it?
So, if he DOESN'T sell it, he'll be charged? How utterly ridiculos! And if he is taxed, is it a one time only tax? What if a minor caught it, and the minor is an orphan? (NO guardians AT ALL). Is it just me, or is our government GREEDY?
Answers:
Well, it would be the same as if he won the jackpot in a lottery; you pay for a ticket and win a prize (money), therefore you pay taxes on that prize. In his case he paid for a ticket and caught a ball (a prize), except that the ball doesn't hold any monetary value until he sells it, but the IRS still sees that ball as property of a significant value, therefore needs to be taxed. He would pay tax on it one time that year, but the increased value of his income would increase his tax liability. If a minor caught it, and they were an orphan (no guardians), the ball would belong to the stadium owners, because while that orphan was in the stadium, the stadium was responsible for that child, but that is a whole different scenario. Yes, the government may be greedy, but we are fighting a multi-billion dollar war right now and someone's gotta fund Condaleezza's next hair stylist appointment.
income from any source is taxable. Even found property can be considered income.
i couldnt agree with you more. It's BS. I'd be really mad if i was that guy.
Well, yes, our government is greedy, but that's a whole other Oprah show.
And, he's not getting taxed for holding it, he's getting taxed for OWNING it. Just like if he inherited a house, a car, or any other valuable piece of property, he would be taxed on the ownership as well as have to pay sales taxes if he sold it.
Wrong.
He is only taxed AFTER he sells it.
The story about him owing taxes just for catching the ball were wrong. The IRS ruled against that with one of the Mark McGwire balls in 1998. The recent news stories all quoted some tax attorney who wanted publicty NOT the IRS.
Well, let's see. If you're a rich person with stock in a company that goes way up in a year, you don't pay any income tax until you sell it. But if you're a poor person who catches something completely by accident, you have to sell it to pay the taxes! Make sense?
The guy with the fattest lawyer always wins.
Unfortunately, this ball has perceived value and the value of the ball can be taxed. I agree that it is stupid but it is the way our tax structure is set up.
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