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OT: Taxing Souvenirs? Barry Bonds' HR Ball?


BigPigPeaches

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Tell me if this scenario makes sense or would work.

This guy is apparently afraid of hanging onto this ball right? so it seems either way he is going to sell it/get rid of it.

Here's the scenario i see.

This guy goes ahead and pays the taxes on this ball at its bought value (someone said 3 bux?) or even if it cost $20 or whatever, right, he pays that tax...OK?

Now, he sells that ball for X number of dollars; so beings HE already paid taxes on this ball, how can they tax that same guy again for that same ball?

Given the gist of this ball being taxable just for "possessing it" wouldn't the taxes be transferred to the new owner following the pattern that they want to establish tax wise?

 

 

 

A new, top of the line Rawlings baseball is worth about $10, which I'm sure is well below any requirement the IRS has for reporting income. When he sells the ball for 500k, or what ever a collector pays for it, the 500k is taxable income and the IRS would definitely nail him for that.

 

The new owner of the ball won't be taxed unless he in turn sells the ball for a profit, at which time he would taxed for the income he made on the ball.

 

When you win a car or a boat or a house on a game show or something the IRS considers that income, but cars, boats and houses are considered real property. They have bluebook value or real estate value that can be set and quantified. I don't know if a baseball can be counted as real property.

 

Any tax experts on the board?

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