Message Board Basketball Forum - InsideHoops

Go Back   Message Board Basketball Forum - InsideHoops > InsideHoops Main Basketball Forums > Off the Court Lounge

Off the Court Lounge Basketball fans talk about everything EXCEPT basketball here

Reply
 
Thread Tools
Old 08-09-2007, 04:26 AM   #1
proof
Banned
 
proof's Avatar
 
Join Date: Jun 2007
Posts: 319
proof has an OK reputation so far
Default IRS comes knocking on Bonds homerun ball



Quote:
Mets fan could face big tax bill over Bonds' home run ball
By MARCUS WOHLSEN, Associated Press Writer
August 8, 2007

SAN FRANCISCO (AP) -- Before he celebrates his windfall, the New York Mets fan who emerged from a violent scrum clutching Barry Bonds' record-setting home run ball should probably call his accountant.

As soon as 21-year-old Matt Murphy snagged the valuable piece of sports history Tuesday night, his souvenir became taxable income in the eyes of the Internal Revenue Service, according to experts.

"It's an expensive catch," said John Barrie, a 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,"

By most estimates, the ball that put Bonds atop the list of all-time home run hitters with 756 would sell in the half-million dollar range on the open market or at auction.

That would instantly put Murphy, a college student from Queens, in the highest tax bracket for individual income, where he would face a tax rate of about 35 percent, or about $210,000 on a $600,000 ball.

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.

On the other hand, he said, if the ongoing federal investigation into steroid abuse among professional athletes takes a criminal turn for Bonds, the ball's value could go down -- which would likely allow Murphy to claim a loss.

Not everyone concurs on Barrie's interpretation of the intersection between professional sports and the nation's tax code.

But for its part, the IRS seems reluctant to clear up the confusion. With six-figure treasures so rarely falling out of the sky, the agency declined to comment Wednesday on what regulations would apply and whether they would be enforced in the case of the Bonds ball.

History does not provide much of a guide since most fans who have been lucky enough to snag previous long balls have chosen to sell their mementos. And at least one ball was as much a source of embarrassment for the IRS as revenue.

As Mark McGwire chased the mark for most home runs in a season in 1998, IRS officials initially said the ball that broke Roger Maris' long-standing record could be subject to taxes even if it were returned to McGwire. The statements were ridiculed by politicians and quickly disavowed by the agency's top brass.

"All I know is that the fan who gives back the home run ball deserves a round of applause, not a big tax bill," then-IRS Commissioner Charles Rossotti said at the time.

Ultimately, Tim Forneris, a member of the St. Louis Cardinals grounds crew, recovered McGwire's 62nd home run ball. He turned it over to the Cardinals and received a trip to Disney World and a minivan in return.

Phil Ozersky, a Cardinals season-ticket holder, caught McGwire's 70th homer later that season and sold it in 1999 to comic book artist Todd McFarlane for $3 million.

A spokeswoman for the Giants said that as with any ball that enters the stands at AT&T Park, Bonds' 435-foot drive into the right-center field stands belonged to the person who caught it, so the team wouldn't seek its return. Bonds said he also had no interest in retrieving it.

Murphy, who went to the game during a layover from a flight to Australia, grew up near Shea Stadium and was wearing a Mets jersey when he made the charmed grab.

He told the New York Daily News he planned to keep 51 percent of the proceeds from the sale of the ball and would give the rest to his friend, Amir Kamal, 21, of New York, who was also at the game.

"I won the lottery," he told the newspaper. "I'm going to be smart about what I do with it."

http://sports.yahoo.com/mlb/news?slu...v=ap&type=lgns
proof is offline   Reply With Quote
Old 08-09-2007, 05:18 AM   #2
Cannonball
Lets GO PENS!
 
Cannonball's Avatar
 
Join Date: Jan 2007
Location: pa...
Posts: 8,884
Cannonball has a near all-star reputation hereCannonball has a near all-star reputation hereCannonball has a near all-star reputation hereCannonball has a near all-star reputation hereCannonball has a near all-star reputation hereCannonball has a near all-star reputation here
Default Re: IRS comes knocking on Bonds homerun ball

Wow I didn't know a baseball could be considered income.
Cannonball is offline   Reply With Quote
Old 08-09-2007, 05:47 AM   #3
Targus™
Good college starter
 
Targus™'s Avatar
 
Join Date: Sep 2006
Location: Sacramento,CA
Posts: 2,146
Targus™ has an OK reputation so far
Default Re: IRS comes knocking on Bonds homerun ball

oh wow, leave the lucky man alone for christ sake. it's just a ball. so much hate on bonds it seems now as if the ball itself is getting more media attention.
Targus™ is offline   Reply With Quote
Old 08-09-2007, 10:04 AM   #4
Sagat
Tiger! Tiger!
 
Sagat's Avatar
 
Join Date: Jul 2007
Location: Tiger Up Her Butt!!!
Posts: 958
Sagat has an OK reputation so far
Default Re: IRS comes knocking on Bonds homerun ball

No wonder the American people are so greedy... they're only following the footsteps of their own government.
Sagat is offline   Reply With Quote
Old 08-09-2007, 10:17 AM   #5
SoCalMike
NBA Legend and Hall of Famer
 
SoCalMike's Avatar
 
Join Date: Jun 2006
Location: Land of 16 NBA Championships
Posts: 23,361
SoCalMike is the Michael Jordan of posters with the best reputation imaginableSoCalMike is the Michael Jordan of posters with the best reputation imaginableSoCalMike is the Michael Jordan of posters with the best reputation imaginableSoCalMike is the Michael Jordan of posters with the best reputation imaginableSoCalMike is the Michael Jordan of posters with the best reputation imaginableSoCalMike is the Michael Jordan of posters with the best reputation imaginableSoCalMike is the Michael Jordan of posters with the best reputation imaginableSoCalMike is the Michael Jordan of posters with the best reputation imaginableSoCalMike is the Michael Jordan of posters with the best reputation imaginableSoCalMike is the Michael Jordan of posters with the best reputation imaginableSoCalMike is the Michael Jordan of posters with the best reputation imaginable
Default Re: IRS comes knocking on Bonds homerun ball

I was shocked to read this too, so it will be interesting if the IRS really comes after him. I say they cannot tax him on anything until he sells the ball (if he sells it). Dang, I hate taxes!




SoCalMike is offline   Reply With Quote
Old 08-09-2007, 11:13 AM   #6
mlh1981
Reds/Bengals/Cavs
 
mlh1981's Avatar
 
Join Date: Jun 2006
Location: St. Petersburg, FL
Posts: 14,299
mlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginable
Default Re: IRS comes knocking on Bonds homerun ball

Sounds like he should've just thrown the ball back on the field
mlh1981 is offline   Reply With Quote
Old 08-09-2007, 11:14 AM   #7
Marko Jaric
Can barely lace up my sneakers
 
Marko Jaric's Avatar
 
Join Date: Jul 2007
Posts: 17
Marko Jaric has an OK reputation so far
Default Re: IRS comes knocking on Bonds homerun ball

Wow, what a bunch of *****. He gets lucky and catches a half-million dollar ball, and the IRS is there immediatly to swindle him out of half.
Marko Jaric is offline   Reply With Quote
Old 08-09-2007, 11:55 AM   #8
VCDrivesAPorscheToWork
Very good NBA starter
 
Join Date: Jun 2006
Posts: 8,369
VCDrivesAPorscheToWork is considered somewhat coolVCDrivesAPorscheToWork is considered somewhat coolVCDrivesAPorscheToWork is considered somewhat cool
Default Re: IRS comes knocking on Bonds homerun ball

why else do people hate the IRS?


but this rule is particularly dumb. charge him if he auctions it. but let him keep the souvenir otherwise.
VCDrivesAPorscheToWork is offline   Reply With Quote
Old 08-09-2007, 04:07 PM   #9
baseketball4life
NBA Superstar
 
baseketball4life's Avatar
 
Join Date: Dec 2006
Posts: 13,926
baseketball4life is considered a brilliant InsideHoops posterbaseketball4life is considered a brilliant InsideHoops posterbaseketball4life is considered a brilliant InsideHoops posterbaseketball4life is considered a brilliant InsideHoops posterbaseketball4life is considered a brilliant InsideHoops posterbaseketball4life is considered a brilliant InsideHoops posterbaseketball4life is considered a brilliant InsideHoops posterbaseketball4life is considered a brilliant InsideHoops posterbaseketball4life is considered a brilliant InsideHoops posterbaseketball4life is considered a brilliant InsideHoops posterbaseketball4life is considered a brilliant InsideHoops poster
Default Re: IRS comes knocking on Bonds homerun ball

damn rich guy
baseketball4life is offline   Reply With Quote
Old 08-09-2007, 04:10 PM   #10
i seen hippos
NBA Superstar
 
Join Date: Jun 2006
Posts: 14,986
i seen hippos is considered a brilliant InsideHoops posteri seen hippos is considered a brilliant InsideHoops posteri seen hippos is considered a brilliant InsideHoops posteri seen hippos is considered a brilliant InsideHoops posteri seen hippos is considered a brilliant InsideHoops posteri seen hippos is considered a brilliant InsideHoops posteri seen hippos is considered a brilliant InsideHoops posteri seen hippos is considered a brilliant InsideHoops posteri seen hippos is considered a brilliant InsideHoops posteri seen hippos is considered a brilliant InsideHoops posteri seen hippos is considered a brilliant InsideHoops poster
Default Re: IRS comes knocking on Bonds homerun ball

How is the IRS able to keep on taxing him?

Do they get to tax art collectors continuously?

Is it just because he got it for free basically?
i seen hippos is offline   Reply With Quote
Old 08-09-2007, 04:11 PM   #11
AppleNader
Cornell Basketball=#1
 
AppleNader's Avatar
 
Join Date: Jun 2006
Posts: 3,307
AppleNader has a terrific reputationAppleNader has a terrific reputationAppleNader has a terrific reputationAppleNader has a terrific reputationAppleNader has a terrific reputation
Default Re: IRS comes knocking on Bonds homerun ball

not unexpected
AppleNader is offline   Reply With Quote
Old 08-09-2007, 04:54 PM   #12
VCDrivesAPorscheToWork
Very good NBA starter
 
Join Date: Jun 2006
Posts: 8,369
VCDrivesAPorscheToWork is considered somewhat coolVCDrivesAPorscheToWork is considered somewhat coolVCDrivesAPorscheToWork is considered somewhat cool
Default Re: IRS comes knocking on Bonds homerun ball

so if the ball is stolen, then he is $200,000 in the hole before student loans are even up?

VCDrivesAPorscheToWork is offline   Reply With Quote
Old 08-09-2007, 06:22 PM   #13
White Chocolate
5-time NBA All-Star
 
White Chocolate's Avatar
 
Join Date: May 2007
Posts: 9,621
White Chocolate has a terrific reputationWhite Chocolate has a terrific reputationWhite Chocolate has a terrific reputationWhite Chocolate has a terrific reputationWhite Chocolate has a terrific reputationWhite Chocolate has a terrific reputation
Default Re: IRS comes knocking on Bonds homerun ball

Quote:
Originally Posted by baseketball4life
damn rich guy


Prior to the 35% being taken out.
White Chocolate is offline   Reply With Quote
Old 08-09-2007, 06:27 PM   #14
mlh1981
Reds/Bengals/Cavs
 
mlh1981's Avatar
 
Join Date: Jun 2006
Location: St. Petersburg, FL
Posts: 14,299
mlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginablemlh1981 is the Michael Jordan of posters with the best reputation imaginable
Default Re: IRS comes knocking on Bonds homerun ball

nothing in this country comes as a "gift." Seems like he should be able to do what he pleases with the ball w/o government interference. Same goes for game show winners. Why can't people just walk off with $10,000 in cash for successful spins of the wheel on The Price is Right? Maybe there is a really good reason for this. Not sure
mlh1981 is offline   Reply With Quote
This NBA Basketball News Website Sponsored by:
Reply


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -4. The time now is 08:27 AM.




NBA Basketball Forum Key Links:
InsideHoops Home
NBA Rumors
Basketball Blog
NBA Daily Recaps
NBA Videos
Fantasy Basketball
NBA Mock Draft
NBA Free Agents
All-Star Weekend
---
High School Basketball
Streetball
---
InsideHoops Twitter
Search Our Site













Powered by vBulletin Version 3.5.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd. Terms of Use/Service | Privacy Policy