How to ruin a good day...can you say IRS???

[Deety]

Bullshit, he didn't "sell" the ball for tickets and souvenirs...he gave the ball back and the team in return rewarded him.

Thus the gift part, I'd guess, though I'd put this into the category of One More Thing Government Has No Business Interfering In. (Guess we'll be moving this thread shortly. :p)

Isn't the first $10,000 of a gift exempt from tax? I seem to recall checking that awhile back. If they gave him two seats, giving them separately might have been better.

 

[Fungo Squiggly]

With a little bit of creativity the Yankees should be able to fix it it's all tax free. Like I said, give him 10 grand worth of gifts for 4 years and it should be covered under the gifting code.

Except that the IRS is saying that it isn't a "gift" because he received the items in exchange for consideration (the baseball).

 

[Deety]

Except that the IRS is saying that it isn't a "gift" because he received the items in exchange for consideration (the baseball).

Okay. I saw the word "gift" in the article and thought that was how it was being considered. Interesting though, because if it was an even exchange between two items of equal worth... but then is the caught baseball actually the "income..." eh, it's all stupid.

 

[Saw31]

Cut off his penis. He deserves it...

 

[DubCoffman62]

Except that the IRS is saying that it isn't a "gift" because he received the items in exchange for consideration (the baseball).

OK, I see, damn them bastards!

 

[Fungo Squiggly]

Okay. I saw the word "gift" in the article and thought that was how it was being considered. Interesting though, because if it was an even exchange between two items of equal worth... but then is the caught baseball actually the "income..."

I don't even think of it's as income as much as a capital gain. He owned the baseball, with a cost basis of zero and, in the view of the IRS, has sold it for the fair market value of the items he received in exchange. With no cost basis in the baseball, the entire value of the items he received is taxable gain.

I just can't see the IRS saying, "Well, since YOU say there was no agreement in place prior to the ball changing hands, then yeah....we'll look at this as a gift instead of barter agreement." Even if that's how it went down, which it certainly sounds like it was.

eh, it's all stupid.

Absolutely! Why do you think I want to become a lion tamer?

 

[DubCoffman62]

I don't even think of it's as income as much as a capital gain. He owned the baseball, with a cost basis of zero and, in the view of the IRS, has sold it for the fair market value of the items he received in exchange. With no cost basis in the baseball, the entire value of the items he received is taxable gain.

I just can't see the IRS saying, "Well, since YOU say there was no agreement in place prior to the ball changing hands, then yeah....we'll look at this as a gift instead of barter agreement." Even if that's how it went down, which it certainly sounds like it was.



Absolutely! Why do you think I want to become a lion tamer?

I always loved that sketch

APPALLINGLY dull fellow, unimaginative, timid, lacking in initiative, spineless, easily dominated, NO sense of humor, TEDIOUS company, and irrepressibly drab and awful.

[ame="http://www.youtube.com/watch?v=XMOmB1q8W4Y"]YouTube - ‪Monty Python - Lion Tamer‬‏[/ame]

 

[jimotis4heisman]

If he had sold the ball, he would have had to pay taxes on it. In effect, he sold the ball for tickets and souvenirs, ergo...taxable income. It sucks for him, but what can you do?

donate the ball to coopers town then

1-consult irs publication 526
2-file form schedule 1040*
3-itemize deduction on schedule a
4-use the value calculated from the amount that exceeds value of the ball minus the fair market value of the ball received
5-maintain all relevant records (and likely be required to maintain ones that are not relevant)
6-obtain written acknowledgement of said record containing the:
a)name of the organization
b)date of the receipt
c)valuation
d)description of the ball
7-complete irs form 8283 form in addition because the gift is over $500
8-attach 8283 non cash charitable form to your year end tax return and file in accordance with your regular return
9-complete irs form 8283 section b

*=determine value using publication 561

 

[jimotis4heisman]

I don't disagree, but the IRS isn't going to look at it that way because that's one of those damnable slippery slopes Ubet keeps mentioning.

a negligence claim?

 

[DubCoffman62]

donate the ball to coopers town then

1-consult irs publication 526
2-file form schedule 1040*
3-itemize deduction on schedule a
4-use the value calculated from the amount that exceeds value of the ball minus the fair market value of the ball received
5-maintain all relevant records (and likely be required to maintain ones that are not relevant)
6-obtain written acknowledgement of said record containing the:
a)name of the organization
b)date of the receipt
c)valuation
d)description of the ball
7-complete irs form 8283 form in addition because the gift is over $500
8-attach 8283 non cash charitable form to your year end tax return and file in accordance with your regular return
9-complete irs form 8283 section b

*=determine value using publication 561

Wanna do my taxes next year?

 

[Wingate1217]

donate the ball to coopers town then

1-consult irs publication 526
2-file form schedule 1040*
3-itemize deduction on schedule a
4-use the value calculated from the amount that exceeds value of the ball minus the fair market value of the ball received
5-maintain all relevant records (and likely be required to maintain ones that are not relevant)
6-obtain written acknowledgement of said record containing the:
a)name of the organization
b)date of the receipt
c)valuation
d)description of the ball
7-complete irs form 8283 form in addition because the gift is over $500
8-attach 8283 non cash charitable form to your year end tax return and file in accordance with your regular return
9-complete irs form 8283 section b

*=determine value using publication 561

Step 10-write check to those rat bastards*...



* IRS not to be confusion with Scum as they are rat fuckers!!!

 

[ScriptOhio]

This year I got a check back from the IRS for $84.

It wasn't a refund.

I have no idea why.

I can only assume they caught an error (in my favor) on my form.

I never received an explaination letter from them.

I did (happily) cash the check.

 

[jimotis4heisman]

donate the ball to coopers town then

1-consult irs publication 526
2-file form schedule 1040*
3-itemize deduction on schedule a
4-use the value calculated from the amount that exceeds value of the ball minus the fair market value of the ball received
5-maintain all relevant records (and likely be required to maintain ones that are not relevant)
6-obtain written acknowledgement of said record containing the:
a)name of the organization
b)date of the receipt
c)valuation
d)description of the ball
7-complete irs form 8283 form in addition because the gift is over $500
8-attach 8283 non cash charitable form to your year end tax return and file in accordance with your regular return
9-complete irs form 8283 section b

*=determine value using publication 561

oh yes, and if work is done for buckyle
10-drink natty light
11-???
12-profit!

 

[jimotis4heisman]

Wanna do my taxes next year?

i do not do people's taxes. however, i used to own a business that i sold awhile ago that worked with small business on multiple issues, this came up much more than one thought. the thing is you may get a $2,501 donation and pay a couple hundred bucks to file all the paperwork, address all the necessary issues, amend tax returns, etc. that is before you get into the costs of the irs: collection, processing, internal audits, external audits, etc

Step 10-write check to those rat bastards*...



* IRS not to be confusion with Scum as they are rat [censored]ers!!!

to the irs? maybe, it a complex issue you might still have a tax liability, but to complex, remote for this discussion. further, who knows since last year we didnt have time/space/interest. moreover, what is interesting is that you can enact a tax (or credit/deduction) and retroactively apply said tax if your the feds certainly within the same year.

 

[Gatorubet]

I just left the IRS. It did not go "well".

I think they now have people in their office building scanning the skies for small private planes.