The following is not meant to be legal advice.
When Barry Bonds hits the 756th home run, some lucky person will catch the ball that some collectors say might sell for up to $1 million. Little does that person know that he/she might have to pay taxes on any sale of that ball.
The ball, has a retail value of about $14 that would appreciate if sold. Some academics have analyzed the pricing of collector baseballs. Some academics say that the IRS will be sure to take its cut. Some say that The Wall Street Journal even has an article on the subject.
However, they ask when will the taxable event take place? Is the ball taxable
when caught or only when sold? Would the price of the ticket to attend the game be added as part of the cost basis? How will the gain be calculated since the person who catches the ball is not the person who buys the ball? What about those who aim to catch the ball in the water with kayaks – do they get any deductions for the equipment?
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