08-22-2007, 07:18 PM
[quote Seacrest]So, you're saying the IRS should have agents rummaging through our homes looking for antiques and heirlooms that *might* be worth thousands of dollars someday? Should they tax my 9 year old niece's finger paintings because there's a remote possibility that she's the next Vermeer?
1) I'm not saying the IRS should or should not do anything, just what they do. It's just the facts, which is what you asked for. Don't shoot the messenger, ya know.
2) You are confusing the issue. If you BUY something it's not a gift. What we are talking about here is a guy catches a historically important baseball that is worth $$$$ to collectors. It cost him $0. As the IRS views it, it was a gift, value received for no investment. It doesn't matter what the item is, a car, an iPod, movie tickets for life, if it has tangible value, and you receive it for free or below market value, that is income to you. Cha Ching. The IRS wants it's cut too.
Now lets get back to the family heirlooms. The IRS does get their share of those goodies as well. It's call the Death Tax. When someone dies the estate's executor has to inventory every spoon and dust mite in the home(s) and pay tax on the value of those items if the estate is worth more than a set amount, currently $2M, but that will go back down to $675K in 2011.
Again, I'm not saying this is right, just what current tax and IRS policy is. Tax policy is for a different thread and forum as you say.
1) I'm not saying the IRS should or should not do anything, just what they do. It's just the facts, which is what you asked for. Don't shoot the messenger, ya know.
2) You are confusing the issue. If you BUY something it's not a gift. What we are talking about here is a guy catches a historically important baseball that is worth $$$$ to collectors. It cost him $0. As the IRS views it, it was a gift, value received for no investment. It doesn't matter what the item is, a car, an iPod, movie tickets for life, if it has tangible value, and you receive it for free or below market value, that is income to you. Cha Ching. The IRS wants it's cut too.
Now lets get back to the family heirlooms. The IRS does get their share of those goodies as well. It's call the Death Tax. When someone dies the estate's executor has to inventory every spoon and dust mite in the home(s) and pay tax on the value of those items if the estate is worth more than a set amount, currently $2M, but that will go back down to $675K in 2011.
Again, I'm not saying this is right, just what current tax and IRS policy is. Tax policy is for a different thread and forum as you say.