Catch a Home Run Ball, Get a Tax Bill?
Yesterday's Wall Street Journal had an interesting article about the possible tax consequences to the poor schmoe who catches Barry Bonds' presumably soon to come record breaking home run ball. The question is whether the lucky spectator who grabs the ball is liable for tax on the value of the ball, and if so, when any tax would become due. The IRS isn;t commenting on the matter - and appears to have no intention of issuing a tax bill - evidently still suffering from the adverse publicity it received the last time there was a home run of consequence. When, during Mark McGwire's pursuit of Roger Maris's single season record, and IRS official was asked what would happen if the fan who caught the record breaking ball returned it to Mr. McGwire, the official stated that the poor fan would face a hefty gift tax bill. After a deluge of criticism, the IRS issued a statement to the effect that, under the circumstances suggested, there would be no gift tax bill. But there are a lot of unanswered questions. What if the ball catcher gifts the ball to the Halon-profitl of Fame, or a charitable non-profit? What if he or she gives it to one of their children, or someone else? What position will the service take? What if Bonds is indicted after the season ends, and the ball becomes worthless? Interesting questions all. Tax isn't ALWAYS dull.
