Fan may owe taxes on Jeter ball

[CrimsonNan]

Buzzkill: Fan may owe taxes on rewards for Jeter’s 3,000th - Big League Stew - MLB Blog - Yahoo! Sports

I know I've heard it all this time. Somebody should be dragged out of their office and horse whipped. BTW, aren't you allowed to GIVE someone $10,000 or more a year without anyone having to pay taxes? So, why wouldn't that work?

 

[CrimsonNan]

A man catches a ball, gives it back, receives some "prizes" for doing the right thing, and POW the damn IRS is after him already. Gimme a break!!!!!!!

 

[GreatDanish]

BTW, aren't you allowed to GIVE someone $10,000 or more a year without anyone having to pay taxes? So, why wouldn't that work?

The IRS "could" view it as the Yankees paid him for the ball. Technically, they could view it as a transaction where he profited.
I'd like to believe he won't get hit with a $14K tax bill.

 

[ValuJet]

I'm willing to bet that fan is a corporate jet owner.

He should be taxed, by God!

 

[CrimsonNan]

The IRS "could" view it as the Yankees paid him for the ball. Technically, they could view it as a transaction where he profited.
I'd like to believe he won't get hit with a $14K tax bill.

I know what you're saying, but they didn't "pay" him. They gave him gifts. The IRS should crawl back under their rock.

 

[It's On A Slab]

Gratuities are income, be they cash or otherwise.

No different than someone being "lucky" enough to win a Lamborghini in a raffle, then not being able to afford the taxes on the winnings.

 

[GreatMarch]

Gratuities are income, be they cash or otherwise.

No different than someone being "lucky" enough to win a Lamborghini in a raffle, then not being able to afford the taxes on the winnings.

If you go into a casino or buy a raffle ticket, you do so with the intent of winning the prize and thus being responsible for the price tag that comes with it. Unless someone present can whip out the cash and claim your victory.
Go to a baseball game, I do not think you have the intent of getting a tax bill. I might be wrong but I would think the Yankee organization may settle the tax bill for the guy. For example, I want to say that happens when someone is the winning visitor at Disney World and gets showered with lavish gifts such as a nights stay in the Disney Cinderella Castle suite. I am sure that room is worth more than $12,000.00 a night and the guest did not show up at the park expecting to be rewarded with such spoils.

 

[DiamondDust]

The IRS "could" view it as the Yankees paid him for the ball. Technically, they could view it as a transaction where he profited.
I'd like to believe he won't get hit with a $14K tax bill.

The best scenario is that the Yankees pay the tax bill. They've been pretty stellar towards the guy, especially since he went out and said, "I want Jeter to have the ball". Still, they gave him an incredible package of gifts with the suite passes for the rest of the season being the most valuable.

 

[gmart74]

when they actually incarcerate geithner for being a tax cheat is when i will view them with anything other than contempt.

 

[ValuJet]

As is typical, the IRS (and the liberals on this board) are only looking for something to tax. He donated an item worth over a quarter million dollars. That sounds like, if anything, he should get a write off.

I won't speak for the liberals on this board, but if Obama comes out and and says "give the guy a break" on the tax, the sudden IRS fans will fall in lockstep with his decision. Obama's pronouncements are the gospel to that dwindling yet hearty 20% who still believe in what was sold to them.

 

[Relayer]

As is typical, the IRS (and the liberals on this board) are only looking for something to tax. He donated an item worth over a quarter million dollars. That sounds like, if anything, he should get a write off.

I like it, but I think only charitable donations qualify as a write-off. Jeter wouldn't make that cut. :biggrin:

I have read that the IRS could view all the stuff he got from the Yankees as a gift, if they so choose, but I wouldn't bank on them doing it.

Of course, the guy could sell off some/all of the stuff and make some load of cash, which, apparently, he really needs.

 

[Bamaro]

The best scenario is that the Yankees pay the tax bill. They've been pretty stellar towards the guy, especially since he went out and said, "I want Jeter to have the ball". Still, they gave him an incredible package of gifts with the suite passes for the rest of the season being the most valuable.

Serious question, if the Yankees pay the tax bill, legally is this payment also taxable?

 

[DiamondDust]

Serious question, if the Yankees pay the tax bill, legally is this payment also taxable?

Good question

 

[CrimsonNan]

Serious question, if the Yankees pay the tax bill, legally is this payment also taxable?

Probably. The IRS will chase you to heaven or hell to get their money.

 

[CrimsonNan]

when they actually incarcerate geithner for being a tax cheat is when i will view them with anything other than contempt.

Oh - I LOVE your post. Yes...yes...yes...

 

[Relayer]

Serious question, if the Yankees pay the tax bill, legally is this payment also taxable?

Yes, but they can just calculate the tax on it and give the man that much extra. He would end up paying just a few buck sout of pocket.

 

[cbi1972]

Yes, but they can just calculate the tax on it and give the man that much extra. He would end up paying just a few buck sout of pocket.

http://www.irs.gov/businesses/small/article/0,,id=108139,00.html

Who pays the gift tax?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.

Naw.

 

[RTR91]

News Headlines

It's not clear whether Christian Lopez, the fan that caught Derek Jeter's 3000th hit, will have to pay any taxes for the roughly $60,000 in tickets and the signed balls and jerseys they gave to him in return.

But even if he does have to cut a check to the IRS, at least a company has stepped up and said they'd pay it for him. Miller High Life, which recently had a campaign to make its beer the official beer of fans, has offered to cover the bill—which could be more than $10,000—for Lopez, who said he has about $100,000 in student loan debt as well.

 

[Bamaro]

The smart thing would have been to donate the ball to Jeter's foundation and then have Jeter buy it from them. That way, he gets the charitable donation and the charity gets some money.

Its probably not too late yet to change the mechanism of the gift.

 

[gmart74]

The smart thing would have been to donate the ball to Jeter's foundation and then have Jeter buy it from them. That way, he gets the charitable donation and the charity gets some money.

that could violate money laundering laws

Serious question, if the Yankees pay the tax bill, legally is this payment also taxable?

yes. but they could pay him a lump sum above the amount so that the eventual total bill amount would be paid off.

example- he owes $10k in taxes. taxes on everything is 10% so if they paid the $10k for him, he would still owe $1k on that new $10K
so they instead pay $12k and he gets to pocket some change left over