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IRS WINS BIG ON BASEBALL PLAYER’S HOME RUN



(RightWing.org) – A record-breaking baseball hit turned out to be a huge stroke
of luck for the fan who caught the ball. Now it’s become a bonus for the IRS,
too — and a reminder that, no matter how you come into money, the government
wants to take a bite out of it.





On October 4, Yankees outfielder Aaron Judge hit his 62nd home run of the season
in a game against the Texas Rangers, breaking Roger Maris’s 1961 record and
sending the ball into the left-field seats. Dallas investment manager Cory
Youmans caught it. When reporters asked him what he planned to do with the ball
he said he didn’t know, but later he decided to sell it.



Despite reportedly getting a private offer of $3 million, Youmans auctioned the
ball, saying he wanted the sale to be “fair, accessible and transparent.” The
winning bid was only $1.5 million, half of what he was offered before going to
auction. Then the auction house took its share — $250,000 in fees — leaving him
with $1.25 million. Now the IRS wants a slice, too.

The bad news for Youmans is the IRS tax code is complicated when it comes to
these matters. A 1969 court case, Cesarini vs United States, established that
any valuables found in the US — known as a “Treasure trove” — are taxable, and
that includes baseballs caught during a game. Even donating the treasure to
charity won’t get one out of paying the government a share of its assessed
value.

With things like tax rates, capital gains and collectible rates, it could be
hard for Youmans to determine exactly what he will owe, but one thing is clear,
the IRS WILL get a cut of this fly ball.

Copyright 2022, RightWing.org


sharonf

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