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On Tuesday, August 7th, Matt Murphy attended a baseball game in San Francisco and was fortunate enough to come
away with Barry Bond's 756th home run ball. Analysts have estimated the ball will fetch somewhere in the neighborhood
of $500,000 or more at auction.
All who follow this story can't help but wonder - exactly how did Mr. Bond's noggin get so stinkin' huge??? But
since this is not a steroid … err … medical newsletter, we need to discuss other important matters like what type
of tax ramifications Mr. Murphy can expect.
Should Mr. Murphy's ball be sold for $500,000, he will instantly join the ranks in the 35% tax bracket and owe
about $175,000 in taxes. But there are some tax experts that believe he could still be taxed even if he decides
to keep it as possession of the ball amounts to "accession to wealth." And if he waits more than year
to sell the ball, would any profit be categorized as a long-term capital gain on a collectible item and be taxed
at 28%? (And all of these issues don't even the deal with the complexity of a New York resident "earning"
all this income in California!)
Fortunately, for Mr. Murphy (or anyone else with tricky tax questions), the financial experts at Arxis Financial
and Arxis Wealth Management stand ready to offer any accounting and financial planning expertise. (For questions
on the long-term effects of the "Cream" and the "Clear," you're on your own.)
To ask a question, request additional information,
or unsubscribe, simply reply to this message. And if you know of anyone who may be interested in "Taxing Details,"
don’t hesitate to pass it along.