08-22-2007, 04:34 PM
[quote billb]
I'd argue the value of the ball being the cost of the game admission.
Edit: but I suppose they would argue back lottery rules.
Not a bad argument, but flawed.
He paid the admission to the baseball club and got value for it. The baseball club pays taxes (or not) on the profits they make from selling tickets and garlic fries.
The baseball was a 'prize' or 'gift' from the baseball club (or baseball Gods), not unlike winning a game show car. He shouldn't really pay "income" tax on it until he realizes income from it. (besides which, IMO, he should really be paying cap gains tax, not income, but WTF do I know.)
macphanatic, I think you're right.
That's why I said "apparently" since I have not heard this from the horse's (IRS officials) mouth either.
I'd argue the value of the ball being the cost of the game admission.
Edit: but I suppose they would argue back lottery rules.
Not a bad argument, but flawed.
He paid the admission to the baseball club and got value for it. The baseball club pays taxes (or not) on the profits they make from selling tickets and garlic fries.
The baseball was a 'prize' or 'gift' from the baseball club (or baseball Gods), not unlike winning a game show car. He shouldn't really pay "income" tax on it until he realizes income from it. (besides which, IMO, he should really be paying cap gains tax, not income, but WTF do I know.)
macphanatic, I think you're right.
That's why I said "apparently" since I have not heard this from the horse's (IRS officials) mouth either.