Re: Why is catching a baseball taxable income?

>> Your question about the timing of
>>> crossing home plate is at best frivilous. > When I went to work for my uncle in his nit picking > business, he told me there were some nits not worth > picking and some nuts whose nits should be picked. He > also said if I learned well, the Governor might appoint > me to a Judgeship. The point being that Judges needs to > know which nits and nuts are worth a Judge's time.

If you consider the past response of IRS to the issue of historic homerun balls it would seem that the question about the timing of crossing home plate is not so frivolous after all. It seems to me IRS has recognized the timing issue and that explains their past response. If I were Murphy and intended to keep the ball for more than three years, I would report the ball with a reasonable value, say the value of a new ball, on my 2007 Federal Income Tax Return. After three years, IRS could not legitimately dispute the tax treatment. If Murphy then sold the ball the sale price less the previously reported value would be long-term capital gain. If the ball were passed on to an heir, there would be a step-up in basis under current law. Cheers,

WDK

> > > > > > > > >