Is An Autograph a Gift?

Posted on August 7, 2007 by Mark Jakubik

Joel Schoenmeyer over at Death and Taxes has published an interesting post that asks some interesting questions about the tax implications of celebrity autographs and the like. Joel's post raises slightly different issues than my recent post about the possible tax implications of, for example, catching Barry Bonds' 756th home run ball, but the questions are somewhat related and no less interesting. Last weekend a friend of mine was lucky enough to attend Cal Ripken's induction into the baseball Hall of Fame, and was even more lucky to get Cal's autograph. Suppose my friend had had Cal sign a cap or jersey that Lou Gehrig, whose record for consecutive games played Ripken broke, had actually worn. Would that autograph add value to the memorabilia in excess of the $12,000.00 annual gift tax exclusion? Probably. Would the IRS experience a black eye bigger than what it suffered after the McGwire home run ball fiasco discussed in my earlier post? Absolutely. Are we likely to ever see the day when the IRS treats celebrity autographs as taxable gifts? Not very.

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Catch a Home Run Ball, Get a Tax Bill?

Posted on July 26, 2007 by Mark Jakubik

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.

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