Fan the caught #3000 for Jeter...NOW may get taxed for the good deed!

[salsadancer7]

I was thinking that this does have to do with Jeter's 3000 hit...but not really. Here is a guy who could have taken the greedy way out, was as classy as Jeter, and now, the poor guy more than likely will have to pay taxes for being a...good guy!:rant::rant::rant:

Tue Jul 12 12:18pm EDT

Buzzkill: Fan may owe taxes on rewards for Jeter’s 3,000th
By Ian Casselberry

Christian Lopez might end up wishing he kept that baseball after all.

Lopez became more than a footnote to the spectacle of Derek Jeter(notes) getting his 3,000th hit on Saturday at Yankee Stadium by returning the milestone baseball to the New York Yankees shortstop rather than cash it in for a likely six-figure payday. That touched off a debate still raging among fans days later: Would you have given the ball back or sold it to the highest bidder for a payday that was rumored as high as $250,000?

For his gesture, Lopez was rewarded by the Yankees with luxury box tickets for the rest of the season (including postseason), along with signed baseballs, bats and jerseys from Jeter. In addition, Lopez received four premium front-row seats to last Sunday's Yankees-Rays game.

Nice haul, right? Sure, but with those generous gifts comes tax liability. As George Harrison once sang for the Beatles, "Let me tell you how it will be; There's one for you, nineteen for me. 'Cause I'm the Taxman."

The IRS will likely consider Lopez's gratuities from the Yankees as income, and if so, he could end up having to pay anywhere from $5,000 to $13,000 in taxes, according to the New York Daily News. The New York Times, meanwhile, says the face value of the tickets to the remaining 32 regular-season games at Yankee Stadium are worth anywhere between $44,800 and $73,600. The paper's conservative estimate puts Lopez's tax bill at $14,000.

Lopez, however, seems unfazed by these revelations.

If the IRS comes calling, he says he'll pay those taxes:

"Worse comes to worse, I'll have to pay the taxes," he told the Daily News on Monday. "I'm not going to return the seats. I have a lot of family and friends who will help me out if need be.

"The IRS has a job to do, so I'm not going to hold it against them, but it would be cool if they helped me out a little on this."

It's unclear from the quote whether the "they" Lopez refers to means the IRS or the Yankees. The IRS could obviously help him out by considering the items he was rewarded as gifts, rather than income. Then he wouldn't owe as much in taxes.

Buzzkill: Fan may owe taxes on rewards for Jeter’s 3,000th - Big League Stew - MLB Blog - Yahoo! Sports

 

[Derwin0]

Hate to say it, but I would agree that all the stuff the Yankee's gave him is taxible income (or at the least subject to gift taxes).

The IRS is not taxing him on the ball, just the stuff that he got in exchange for it. Now the Jeter or the Yankees could be nice and pay the tax for him. Hell they probalbly already are, and the Daily News is just running with the story, especially since any taxes won't be due until April 16th, 2012.

 

[Skyhi]

It's unclear from the quote whether the "they" Lopez refers to means the IRS or the Yankees. The IRS could obviously help him out by considering the items he was rewarded as gifts, rather than income. Then he wouldn't owe as much in taxes.

Buzzkill: Fan may owe taxes on rewards for Jeter’s 3,000th - Big League Stew - MLB Blog - Yahoo! Sports

Correction: If it's a gift he will owe $0 in taxes. Gift Recipients are never taxed. IMO, the seats don't meet the definition of income, but you never know with the IRS. Hopefully Jeter will pick up the tab if the IRS comes knockin.

 

[salsadancer7]

That is crazy! LOL! You almost start thinking to yourself, "IF I was to catch a ball with that much historical signifigance, I am seriously thinking of making money so Uncle Sam does not go after me for being a nice guy!"

 

[cosmo_kramer]

Looks like one good turn deserves another: :up

"Miller High Life believes you should be rewarded for doing the right thing, not penalized," Miller High Life brand manager Brendan Noonan said in a statement. "We want to recognize Christian Lopez, and in turn everyone like him, for doing the common sense thing and help him continue to live the High Life."

The sporting goods store Modell's also will announce Wednesday afternoon at its Times Square location that five percent of all of its Yankees merchandise sales July 13-19 will be donated to Lopez to help pay the taxes and student loans he's accrued.

Lopez has said he owes $100,000 from his days at St. Lawrence University.

Companies to pay New York Yankees fan Christian Lopez's taxes - ESPN New York

 

[salsadancer7]

Looks like one good turn deserves another: :up



Companies to pay New York Yankees fan Christian Lopez's taxes - ESPN New York

what's that phrase, "paying it forward"?

 

[whitewolf8214]

typical obama the government and the irs to get money anyway they can out of us

 

[televisionarchives]

I'm not sure of the rules but if Miller helps him with the blll doesn't he have to claim that as well? Miller also offered to throw a party for Lopez and his friends with free beer. I'm guessing this is more of a PR stunt by Miller .

 

[navychop]

Correction: If it's a gift he will owe $0 in taxes. Gift Recipients are never taxed. IMO, the seats don't meet the definition of income, but you never know with the IRS. Hopefully Jeter will pick up the tab if the IRS comes knockin.

Hmmmm. Don't think so. If I wasn't paid a salary, but was given a "gift" I'd still owe. If someone gave me $20,000 they'd be required to report it, and I'd be required to declare it as income and pay taxes on it - at the highest marginal tax bracket I'm in. Prize winnings in TV game shows are also taxed.

 

[televisionarchives]

I believe Parents are allowed to give gifts to the kids up to a certain amount. Went to the Price is Right years ago and they tax your prizes and I believe California gets a chunk of it as well. . That's why many who win cars never take the car. They sell it back to the dealership , take the cash, pay the taxes. That's what I would do . Sell the car back to the dealer. Take the money , put it in the bank and then finance a car .

 

[Jimbo]

I'm not sure of the rules but if Miller helps him with the blll doesn't he have to claim that as well? Miller also offered to throw a party for Lopez and his friends with free beer. I'm guessing this is more of a PR stunt by Miller .

Of course it is, that said, Lopez is happy and Miller gets free advertizing !
It's a Win Win situation ...

 

[Jimbo]

Hmmmm. Don't think so. If I wasn't paid a salary, but was given a "gift" I'd still owe. If someone gave me $20,000 they'd be required to report it, and I'd be required to declare it as income and pay taxes on it - at the highest marginal tax bracket I'm in. Prize winnings in TV game shows are also taxed.

Except that it's NOT INCOME unless he sells something.

Doesn't matter, others will pick up the tab, which is a cool thing.
Would have been nice if Jeter would have, but at least someone is.

 

[Jimbo]

Hmmmm. Don't think so. If I wasn't paid a salary, but was given a "gift" I'd still owe. If someone gave me $20,000 they'd be required to report it, and I'd be required to declare it as income and pay taxes on it - at the highest marginal tax bracket I'm in. Prize winnings in TV game shows are also taxed.

I believe Parents are allowed to give gifts to the kids up to a certain amount. Went to the Price is Right years ago and they tax your prizes and I believe California gets a chunk of it as well. . That's why many who win cars never take the car. They sell it back to the dealership , take the cash, pay the taxes. That's what I would do . Sell the car back to the dealer. Take the money , put it in the bank and then finance a car .

I think it's like under $ 10,000 and you don't have to claim it.

 

[Skyhi]

Hmmmm. Don't think so. If I wasn't paid a salary, but was given a "gift" I'd still owe. If someone gave me $20,000 they'd be required to report it, and I'd be required to declare it as income and pay taxes on it - at the highest marginal tax bracket I'm in. Prize winnings in TV game shows are also taxed.

Nope. You're way off. Recipients of gifts NEVER pay taxes on the gift. The issue is if the $$$ is considered income or a gift. If you do work, and your employer pays you money, the IRS will consider it income whether you or your employer want to call it a "gift" or anything else. It's income. If someone gave you $20,000 or 200,000,000 *out of the kindness of their heart* you would not be taxed. Lotteries and prize winnings are taxed because the IRS does not consider them gifts.

 

[Skyhi]

I believe Parents are allowed to give gifts to the kids up to a certain amount. Went to the Price is Right years ago and they tax your prizes and I believe California gets a chunk of it as well. . That's why many who win cars never take the car. They sell it back to the dealership , take the cash, pay the taxes. That's what I would do . Sell the car back to the dealer. Take the money , put it in the bank and then finance a car .

Parents can give unlimited gifts to their kids (and anyone else) without the kid having to pay tax. It has to be a gift, though. If its actually a 0% loan, the parents could be made to pay tax on imputed interest.

Sorry. Tax lesson in a Sports forum over.

 

[raoul5788]

Parents can give unlimited gifts to their kids (and anyone else) without the kid having to pay tax. It has to be a gift, though. If its actually a 0% loan, the parents could be made to pay tax on imputed interest.

Sorry. Tax lesson in a Sports forum over.

Are you a tax expert? If so, I think you need to brush up on your facts:IRS Gift Tax Rules and Limits - Gifts to Children

 

[d777jj]

Lets say the ball was worth 200k.
Does Jeter have to pay tax on that 200k baseball he received for nothing?
Can the fan deduct the 200k from his taxes because he gave Jeter a gift?

 

[Jimbo]

Lets say the ball was worth 200k.
Does Jeter have to pay tax on that 200k baseball he received for nothing?
Can the fan deduct the 200k from his taxes because he gave Jeter a gift?

Interesting points !

I had heard that the guy should have been able to sell the ball for about $ 500,000 if he sold it soon, the longer he had it the less he would get for it.

 

[televisionarchives]

If the IRS is going after him you have to believe they know they've got the law behind them.

 

[riffjim4069]

My take...anyone selling or buying the Jeter baseball for more than $8 (or however much a baseball costs these days) are morally corrupt and need to ask their parents what they did to screw-up their personal value system. The correct thing(s) to do were: 1) keep the ball and cherish it throughout the years; 2) give the ball to Mr. Jeter so he can do the same; 3) donate the ball to the Hall of Fame in Cooperstown for everyone to enjoy. It's a freaking $8 baseball for crying-out-loud...and you should never place a pricetag on memories. That's the way I roll.