America's Pastime and Taxes: Another Ridiculous Story
I love sports...especially baseball. It has been a childhood favorite of mine that has stuck with me throughout my growth. With that, the most recent headline in the world of Major League Baseball (as many of you know) is the new career home run record set by Barry Bonds last week.What many do not know, however, is the story of Matt Murphy; the 21-year old who caught HR #756. "I won the lottery," Murphy claimed to the NY Daily News following the catch. Good for him...but he is also going to get hit with the hefty taxes of a lottery winner.
The estimated value of the ball is around $600,000. If it goes at auction for anywhere near the amount, he will be escalated into the highest income tax bracket, which comes with a tax rate of 35% (or about $210,000). Even if he doesn't sell the ball, he's still going to get hit with the tax because it is considered an asset gain Murphy came into possession of it (caught it). On top of that, Capital Gain taxes will be imposed on him as the ball increases in value over time.
Murphy said on television recently that he would like to keep the ball, but I just don't see how thats financially possible in this situation for a college kid from Queens, NY.
ESPN Story
Murphy might not sell 756 Ball
posted by Carl Soderberg at
10:38 PM
2 Comments:
That sucks that even if he keeps it he owes over $200 grand to Uncle Sam. Who decides what the estimated value is anyways?
such crap...i never knew the government had us by the balls THAT much. With that idea, shouldnt they be taxing us on any $9 foul ball we catch?
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