Bonds and Taxes

So there is some scuttlebutt about Barry Bonds and taxes. No, he’s not going to count possible steroids on his Form 1040; I’m talking about the 756th home run ball he hits that breaks Hank Aaron’s record.

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There is a debate going on about the person that catches Barry’s ball and what he/she might have to pay in taxes. From the Wall Street Journal:

As Barry Bonds closes in on Hank Aaron’s home-run record, a fun tax-law question looms: If you’re the lucky fan who catches the record-breaking home run ball, what are the tax consequences?

“Everyone’s sure they know the right answer, but there’s very little agreement” on what it is, tax lawyer Phillip Mann of Miller & Chevalier tells the WSJ’s Tom Herman in this article. Here are the choices:

1. The fan who catches the historic ball shouldn’t owe tax until he or she sells it. This is the common sense view, though as Herman points out common sense sometimes doesn’t comport with the tax code.
2. It’s taxable income to the fan the instant that person catches the ball because it’s “accession to wealth.” This view logically stems from cases saying that someone who finds a “treasure trove” owes tax on it right away.

There’s a host of related questions raised by Herman about the ball, which is expected to be worth in the half-million dollar range. Will the IRS require the fan to pay tax immediately, based upon the ball’s estimated fair-market value; or only after the fan sells the ball? Will the fan have to pay tax based on regular federal income-tax rates, or if the fan waits a year to sell the ball, would any profit qualify as a long-term capital gain? And if it qualifies as a long-term capital gain, what would the fan’s cost be for tax purposes?

The IRS refuses to comment on the matter. Herman asked IRS chief counsel and baseball fanatic Don Korb, who responded, “Please, whatever you do, don’t ask me that question.”

So, the IRS Chief Counsel really doesn’t know what to do. The IRS should probably just stick with the statement they made about Mark McGwire’s & Sammy Sosa’s 1998 HR Debry (at least when it comes to the gift tax):
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SEC Media Days Voters Speak

From TideSports.com 

SEC Champion - LSU (54), Florida (7), Arkansas (5), Auburn (4), Alabama (3), South Carolina (3), Tennessee (2), Georgia (2).

Eastern Division (First Place votes in parenthesis)
1. Florida (41) 131
2. Tennessee (16) 201
3. Georgia (12) 225
4. South Carolina (11) 272
5. Kentucky 389
6. Vanderbilt 462

Western Division (First Place votes in parenthesis)
1. LSU (63) 110
2. Auburn (5) 205
3. Arkansas (5) 237
4. Alabama (7) 256
5. Ole Miss 430
6. Mississippi State 442

All-SEC (Alabama players only):

First Team Offense

OL Andre Smith Alabama 6-4 348 So. Birmingham, Ala.

Second Team Offense

C Antoine Caldwell Alabama 6-4 288 Jr. Montgomery, Ala.

First Team Defense

DB Simeon Castille Alabama 6-1 189 Sr. Birmingham, Ala.

Second Team Defense

DL Wallace Gilberry Alabama 6-4 264 Sr. Bay Minette, Ala.

LB Prince Hall Alabama 5-11 255 So. Moreno Valley, Calif.

Crimson & White Roundtable: Superstar Edition

Welcome to another installment of the Crimson and White Roundtable. This week, Capstone Report is hosting the event. He only has one question this time, but asked for 2 answers:

The University and its football fans have a lot of negative stereotypes
associated with the Crimson Tide. What are two things you wish outsiders
(non-Alabama fans) knew about the Crimson Tide and its fans?

So please feel free to click the link and see what we had to say. CR always brings some good stuff to the table, as do the rest of the Bama bloggers. He’s the rock star of Bama bloggers with all of those links and such. He’s even received kudos from Paul Finebaum multiple times. He’s not just a rock superstar, he’s a blog superstar.

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So you wanna be a blog superstar, and post large
a big Imac, 5 bars, you’re in charge
comin’ up in the web, don’t trust no body
gotta look over your typos constantly

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