So here’s an interesting dilemma accountants can sink their teeth into: By catching Barry Bonds’ record-setting home run ball the other night, New Yorker Matt Murphy placed himself into a different tax bracket - whether or not he sells the ball.
Here’s how: The ball is estimated to be worth about $500,000, so it makes sense that if he were to sell the ball, he would pay about 35 percent of the revenue to the government. What doesn’t make a whole lot of sense to me is if he decides to bring it home and put it on his nightstand, Murphy would still have to pay taxes on the ball “based on a reasonable estimate of its value.”
Knowing this, what would you do with the ball? Long Island Business News Managing Editor-Print Gregory Zeller, who believes America is apple pie, Captain Kirk and baseball, immediately said he would sell the ball to the Hall of Fame for less than he would get on the open market.
I agreed with him. Baseball is America. So why not make every last cent you can on the ball? Almost every player on the field that day played for the team that offered him the most money. The $8 hot dogs and $6 ice cream cones are thanks to the millionaire player. Plus, Barry Bonds is a horrible human being.
Sir Zeller quickly changed his mind. Unfortunately for Zeller, the only ball he ever caught was when Dave Kingman, a 1970s Mets icon, hit one to him in batting practice. That’s worth about $5.
I nearly caught a ball at a Bridgeport Bluefish game, but I ducked out of the way. Some kid ran two sections over and picked the ball up while I cowered in the fetal position.
Take the money and run, I say. That’s the American way.
And, of course, give Uncle Sam his share, because, unfortunatley, that’s the American way, too.
I think it is totally ludicrous that he would have to pay taxes on a baseball that he caught during the game — even if he just displays it in his home. I can understand paying taxes on what he makes if he sells it, but just for having it in his possession? Ridiculous!!
Given that Bonds’ record is, shall we say, suspect, the not-so-proud owner of the ball could argue to the IRS that its value is far less than its imputed worth-if, of course, he wants to keep it. But based on a possibly declining value for Barry memorabilia (the word indictment comes to mind!), a prudent investor would sell right now, a cheerfully pay the Feds.
The Hall of Fame does not purchase memorabilia, typically someone else would purchase it, and loan it to the HOF.
The IRS would have to pry that tax money from my attorney’s cold, dead fingers — at least until I sell the ball. If I do sell it, OK, fine … Uncle Sam gets his cut. But until then, there are WAY too many variables in determining the ball’s future worth to justify any kind of tax. For instance: When Bonds lands in C Block and the ball’s value plummets, are the Feds going to reimburse some of that premature taxation?