Blog Entry

Giving back Jeter's ball may prove tax liability

Posted on: July 12, 2011 1:56 pm
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By Matt Snyder

And now we present to you, today's version of "no good deed goes unpunished."

Remember Christian Lopez? He was the fan who caught Derek Jeter's 3,000th hit, which was also a home run. He gave the ball back to Jeter without any monetary demands -- and he could have easily made a windfall had he put the ball up for sale. For example, Barry Bonds' 715th home run ball went for over $200,000. But when Yankees president Randy Levine asked what Lopez wanted for the Jeter ball, Lopez replied: "How about a couple signed balls, some jerseys and bats." (New York Times)

That's it. Obviously, Jeter and the Yankees granted Lopez's request. Lopez even told reporters he owed more than $100,000 in student loans, but felt the ball belonged to Jeter. Of course, Lopez is now likely going to have to pay some pretty hefty taxes on the gifts the Yankees have given him.

Via NYTimes online:
The Yankees gave Mr. Lopez four Champions Suite tickets for their remaining home games and any postseason games, along with three bats, three balls and two jerseys, all signed by Jeter. For Sunday’s game the team gave him four front-row Legends seats, which sell for up to $1,358.90 each.
With so many home games remaining at those lofty prices, it is estimated that the value of Lopez's coup could be over $50,000, which means he'd owe $14,000 in taxes. If it is determined the Yankees gave these items as an act of generosity -- instead of an exchange of goods -- Lopez wouldn't owe a dime. So it's up to the IRS.

Who would have thought, when Lopez caught the ball and did the kind thing, he may have incurred a $14,000 tax liability.

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Comments
hotmeuly
Since: Dec 2, 2011
Posted on: December 21, 2011 9:08 pm
This comment has been removed.

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Since: Dec 2, 2011
Posted on: December 5, 2011 4:17 am
 

Giving back Jeter's ball may prove tax liability

Hey, i presume an individual have seen individual web invest began to "return the actual favour".I appreciate wanting to find easy methods to establish points into my husband and my web-site!Just maybe this right to make use of a lot of the alternatives!!



Since: Jul 14, 2011
Posted on: July 14, 2011 9:15 am
 

Giving back Jeter's ball may prove tax liability

According to tax law, the giver, not the receiver, pays gift tax on the amount over $13,000.  So I doubt that Lopez would be paying gift tax on the tickets received.  He could possibly pay gift tax on the baseball. Or if the gift was given with the expectation of getting something back in return, then the IRS might hit him up on income tax for the value of the tickets, etc.  Lopez's basis in the Jeter baseball is zero - he didn't pay anything for it.



Since: Nov 9, 2008
Posted on: July 13, 2011 5:43 pm
 

Giving back Jeter's ball may prove tax liability

"Most of you people are dum. "

Sigh...



Since: Dec 16, 2010
Posted on: July 13, 2011 5:13 pm
 

Giving back Jeter's ball may prove tax liability

Most of you people are dum. Hes not getting taxed because of the ball hes being taxed because of the gifts he received. It doesnt matter if he gave the ball or not and never asked for anything in return. When you get gifts that exceed x amount you must pay taxes on that. If the yankees gave him 1 games worth of tickets then it would be like a promotion but they gave him 4 seats for 30+ plus games that is no longer a promotion it is now a gift valued at $40K+ so he must pay the taxes. This has nothing to do with the value of the ball you f.... idiots!



Since: Nov 14, 2006
Posted on: July 13, 2011 1:52 pm
 

Giving back Jeter's ball may prove tax liability

He did not sell the ball.  Thus, he did not PROFIT from the ball.  It's not income.  That he was given a gift is not income.  But, the Yankees can't simply give a gift tax free.  It should be on the Yankees to pay gift taxes, not the kid to pay income taxes.  The Yankees should quite easily be able to classify the gifts as such and pay the tax.  As long as it's all sorted out before Jan 1, this media speculation is just that, speculation.



Since: Jun 3, 2008
Posted on: July 13, 2011 12:10 pm
 

Giving back Jeter's ball may prove tax liability

The fact that he said that Jeter deserved the ball was him acknowleding that he gave the ball willingly, at no cost, with no expectations for a "return of goods."  The organization then decided to reward him for the gift by giving a gift of generosity.  He didn't ask for anything. He should owe no taxes on it.  However, if he does, then the organization should allow him to sell some of the tix so he can recoup costs which will obviously pay for the taxes.  At $1300 a tix and he got 4 per home game for the rest of the season...do the math, he can make up the $14,000 in taxes by selling the tickets.  Either way, it won't cost the guy anything.



Since: Nov 17, 2008
Posted on: July 13, 2011 12:01 pm
 

Giving back Jeter's ball may prove tax liability

C'mon this is an act of generosity, not an exchange of items... the guy didn't even ask for the tickets, which account for almost all of the new taxes he would have to pay.  



Since: Oct 8, 2010
Posted on: July 13, 2011 11:05 am
 

Giving back Jeter's ball may prove tax liability

That would be great



Since: Apr 9, 2009
Posted on: July 13, 2011 10:50 am
 

Giving back Jeter's ball may prove tax liability

Wouldnt it be great if Jeter signed it then sold it for 250k+ ...


....and then gave the money to the son of the fireman that accidentaly died in Texas trying
to get a ball for his kid.



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