Little Tart loves it all…most of the time

Taxing balls

Posted on: August 22, 2007

Am I the only person who finds the news that simply owning Barry Bonds’ ball (i’m not sure what it was for – but seemed to be important to sports people) will cost the 21 year old who caught it to much in taxes to keep?

Since when are we taxed for material possesions?  Did I miss something?  Should I have paid taxes on the Bare Minerals my mom sent me?  Why on earth would he have to pay taxes on a ball he caught?  Can someone explain, because it sounds like a urban legend to me.

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2 Responses to "Taxing balls"

Yah I thought that was pretty stupid, but I thought about it and its only semi stupid, in the was that all tax is semi stupid. You don’t have to pay tax on your Bare Minerals, because I’m pretty sure material assets you gain aren’t taxable under a certain value. If your mom gave you a new car, that would be taxed as a capital gain, or whatever its called. The reason why the ball is taxable is because it’s worth several hundred thousand dollars, appraised. Even if he doesn’t plan on selling it, his net worth has now technically increased by the appraisal of the ball’s worth. If you found a million dollars worth of diamonds in your back yard, you would be taxed on their value, so its really the same thing, it’s income even if it’s not cash The stupid part I think is that you shouldnt be taxed until you actually profit by selling, but I really dont know much about it, and it’s always been that way. At least its one of the few rules that allows rich people to be taxed more than they would be, since much of their wealth consists of non liquid assets.
The stupidest thing of all about this though is that it seems like the guy really didnt intend to sell the ball. He actually valued a baseball hit by some jackass more than five hundred thousand dollars. and hes not a rich guy. Meaning, by his logic, if before he caught the ball someone came up to him and said ‘you can have this baseball that someone hit that set a record which is probably itself going to be broken again by someone else in a couple years, or you can have a half million dollars cash’, he would actually say ‘I’ll take the ball.’

That’s what is strange to me. It is one thing to tax the profits of selling the ball (which I have no problem with) its a whole other story to say “You caught this ball that some people would pay $500,000 so you have to pay taxes on it now when you haven’t made a cent off of it.” I don’t even believe that its true, I think it is bullshit.

What this means is that poor people are not allowed to own any found material goods that rich people might value. I wonder if this kid has really spoken to the IRS or if he is just getting advice from the media and his dad’s gold buddy/CPA.

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