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

[televisionarchives]

He has to be very very careful with any income he gets because of the luxury box tickets. If friends or family pay him for the seats the IRS will go after that as well. It's no fun but it's the law.

 

[Juan]

Lol! All that matters is what the IRS says it's basis is at the time of transfer. IIRC, they'll use an $8 basis. It makes sense because if (and I know it will never happen) Jeter sells it for $1,000,000, he'll owe capital gains taxes on $999,992.

Obviously I know the ball is worth more than $8.

ok you are now an expert in expert in my book

 

[Juan]

Could he have donated the ball to Cooperstown and taken a million dollar deduction from his income taxes?

 

[Skyhi]

Could he have donated the ball to Cooperstown and taken a million dollar deduction from his income taxes?

That's a loaded question, but the short answer is no.

 

[Jimbo]

Are you saying the donee is never required to pay taxes on gifts regardless of the amount?

Recipients of gifts do not have to pay taxes on the gift - - they only have to pay tax on any income the gift generates or capital gains tax if the gift is sold. Gifts are not income and the gift tax only applies to the donor.

Thats how I have thought it to be, if the guy SELLS it (stuff he was given) then he would be taxed on it.