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BamaAla
07-12-2011, 01:08 PM
Think the IRS will send him a bill?

http://www.cbssports.com/mcc/blogs/entry/22297882/30593523


And now we present to you, today's version of "no good deed goes unpunished."

Remember Christian Lopez? He was the fan who caught Derek Jeter's 3,000th hit, which was also a home run. He gave the ball back to Jeter without any monetary demands -- and he could have easily made a windfall had he put the ball up for sale. For example, Barry Bonds' 715th home run ball went for over $200,000. But when Yankees president Randy Levine asked what Lopez wanted for the Jeter ball, Lopez replied: "How about a couple signed balls, some jerseys and bats." (New York Times)

That's it. Obviously, Jeter and the Yankees granted Lopez's request. Lopez even told reporters he owed more than $100,000 in student loans, but felt the ball belonged to Jeter. Of course, Lopez is now likely going to have to pay some pretty hefty taxes on the gifts the Yankees have given him.

dannno
07-12-2011, 01:26 PM
Sounds more like a barter... I'll bet the govt. tends to see bartering as two people exchanging gifts so they can still tax them both.

TCE
07-12-2011, 01:28 PM
Can you really see the IRS going, "a transaction taking place? Yeah, let's not tax it."

HOLLYWOOD
07-12-2011, 01:30 PM
State/City taxes too... Though Bloomberg will set an example of 'compassion".

Yah think Jeter gave him some "CA$H" too?

http://www.gossipcop.com/derek-jeter-new-york-yankees-deal-51-million-dollars-agreement-contract/

Derek Jeter and Yankees Agree to $51 Million Deal


Derek Jeter (http://gossipcop.com/tag/Derek-Jeter) and the New York Yankees have reached an agreement that would score the legendary shortstop $51 million over three years, a source tells the Associated Press (http://news.yahoo.com/s/ap/20101204/ap_on_sp_ba_ne/bba_yankees_jeter;_ylt=AopIAEaXyJBMcBdvsEdpv3oLMxI F;_ylu=X3oDMTJkNjlvYTFoBGFzc2V0A2FwLzIwMTAxMjA0L2J iYV95YW5rZWVzX2pldGVyBHBvcwM2BHNlYwN5bl9zdWJjYXRfb GlzdARzbGsDYXBzb3VyY2V5YW5r).
Additionally, there’s an option for an additional $8 million for the 2014 season, which if the deal is done – minus a built-in guaranteed $3 million penalty should the negotiations fall through – would net the future Hall of Famer a total of $56 million for four seasons.
But that’s not all.
There’s also a bonus system, too.
The AP notes if Jeter “finishes anywhere among top six in AL MVP voting and if he wins World Series MVP, league championship series MVP, Gold Glove or Silver Slugger Awards,”
Jeter’s total take could add up to $65 million.
http://static02.mediaite.com/gossipcop/uploads/2010/12/Derek-Jeter--266x400.jpg

What do you think about Jeter’s rumored deal?

specsaregood
07-12-2011, 01:38 PM
Sounds more like a barter... I'll bet the govt. tends to see bartering as two people exchanging gifts so they can still tax them both.

Yes, bartering is taxable.

JP2010
07-12-2011, 02:34 PM
Isn't it only as valuable as a regular baseball until he sells it?

AGRP
07-12-2011, 03:06 PM
This is why people suggested him to disappear and work something out under the table.

emazur
07-12-2011, 03:23 PM
Isn't it only as valuable as a regular baseball until he sells it?

Seems like it should be - today the ball might be worth $10,000 (just making this up) but maybe a few years down the line Jeter is found with steroids while having an affair with Sarah Palin in the Appalachian Mountains while drunkenly uploading youtubes of himself saying "god damn America", and then the value of the ball drops to 10 cents. Dude with the ball could say to the IRS: "why'd I have to pay the taxes of a $10,000 ball that's now worth only 10 cents?", and the IRS would respond "Because fuck you, that's why."

angelatc
07-12-2011, 03:49 PM
Think the IRS will send him a bill?

http://www.cbssports.com/mcc/blogs/entry/22297882/30593523

Sportswriters shouldn't write tax opinions. There's no tax due unless the value of the gifts exceeds $13,000. If that's the case, the person who gave the gift is responsible for the tax.

libertarian4321
07-12-2011, 03:51 PM
From the article:


With so many home games remaining at those lofty prices, it is estimated that the value of Lopez's coup could be over $50,000, which means he'd owe $14,000 in taxes.

That sucks.

However, I guess he could sell the tickets to some of the games, and use the proceeds to pay off the taxes.

angelatc
07-12-2011, 03:52 PM
Isn't it only as valuable as a regular baseball until he sells it?

No. They're mean, but not retarded. It would be taxed at fair market value:
"Fair Market Value is defined as: "The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. The fair market value of a particular item of property includible in the decedent's gross estate is not to be determined by a forced sale price. Nor is the fair market value of an item of property to be determined by the sale price of the item in a market other than that in which such item is most commonly sold to the public, taking into account the location of the item wherever appropriate." Regulation §20.2031-1

dannno
07-12-2011, 03:53 PM
Sportswriters shouldn't write tax opinions. There's no tax due unless the value of the gifts exceeds $13,000. If that's the case, the person who gave the gift is responsible for the tax.

Really??

So if you want to buy your dad a Cadillac you have to pay sales tax on the car plus a gift tax on top of that?

angelatc
07-12-2011, 03:54 PM
Really??

So if you want to buy your dad a Cadillac you have to pay sales tax on the car plus a gift tax on top of that?

Yes. Sales taxes are local. Gift taxes are federal.

However, if you and your wife want to give Pops the car, you can each contribute $13,000 to the cause.

angelatc
07-12-2011, 04:03 PM
Sportswriters shouldn't write tax opinions. There's no tax due unless the value of the gifts exceeds $13,000. If that's the case, the person who gave the gift is responsible for the tax.

After reading the article, it seems that it's up to the IRS to decide whether an exchange of goods took place, or if it was a gift.

BamaAla
07-12-2011, 04:06 PM
Sportswriters shouldn't write tax opinions. There's no tax due unless the value of the gifts exceeds $13,000. If that's the case, the person who gave the gift is responsible for the tax.

Tell it to the "tax experts." They don't really seem to know, but it looks like they might be leaning towards your assessment.

I'm thinking he'll probably be able to get around this, but who knows with that evil three letter beast. It wouldn't surprise me in the least if they said this was barter since there was, apparently, an open ended offer prior to the ball being given to Jeter.

Jeter is a stand up guy and the Yankees are a stand up organization, so I imagine that the guy will never have to pay for it if he does end up getting hit with a bill. It's the principle that is at question.

http://abcnews.go.com/US/yankees-fan-caught-derek-jeter-ball-pickle-irs/story?id=14054473


Many tax experts believe Lopez could beat any attempt by the IRS to collect on good luck and believe that it's likely he will be able to write off the Yankee largesse as non-taxable gifts.
...
Barrie said that since it seems Lopez gave the ball back without expectation of receiving anything in return, that could be a determining factor as to whether or not Lopez could get off the hook.
...
Marc Gerson of the Miller and Chevalier law firm, which specializes in tax law, said he questions if the tickets and Jeter memorabilia that Lopez received will be taxable.

"There's a lot of discussion every time this comes up," said Gerson, referring to other iconic home run balls that are caught. "Some people would say that getting the memorabilia is taxable, but there's an equal amount of weight given to it be a gift ? I think the stronger argument is that it's the receipt of a gift from the Yankees to the individual."
...
The issue of tax ramifications following fans catching historic baseballs was addressed by the IRS in 1998 when the agency released a statement specifically addressing fans that catch home run balls and return them immediately. It stated that generally fans will not be taxed under these circumstances. This, however, only applies to the ball, and not to the tickets and memorabilia that Lopez received afterwards.

lester1/2jr
07-12-2011, 04:18 PM
how can the possibly determine the fair market value for it? Isn't this how nurismatic coins got around the FDR's gold thing?

It's worth whatever anyone is willing to pay for it, not "fair market value".

angelatc
07-12-2011, 04:33 PM
how can the possibly determine the fair market value for it? Isn't this how nurismatic coins got around the FDR's gold thing?

It's worth whatever anyone is willing to pay for it, not "fair market value".

The point is that the guy holding the ball can't pretend it only as the same value as a regular baseball, because it has more value than a regular baseball. Any time there's a capital gains item that changes hands for tax purposes, appraisers assign a fair market value to it.

Fair market value is pretty much defined as what anyone is willing to pay for it.

HOLLYWOOD
07-12-2011, 08:10 PM
Jeter just offered the guy a manager job at his restaurant.

http://www.nbc.com/saturday-night-live/video/derek-jeters-taco-hole/1198094/