No more guessing over how much Matt Murphy owes the IRS. The bill is around $239,375.
Murphy is the baseball fan who came
Was the ball a gift, as a couple of readers contemplated at my post about after Barry's blast? Or was the ball's presumptive value subject to tax even before a sale?
Murphy put an end to the parsing of the tax code this weekend when he put the ball up for auction and came away $752,467 richer.
Well, that much richer for a while. Now for the tax bite.
Taking the winning bid amount and running it through the estimated tax worksheet, using one exemption (I'm not sure of his marital status or if he has any dependents) and the standard deduction for a single filer, you come up with tax liability of almost $240,000.
Of course, Murphy probably has wage income to count, too. And his tax tax adviser
More MLB moolah: During the same auction at which the record-breaking home run ball was sold, Sotheby's/SCP also took bids on #755, the ball that tied the record. It was caught by Adam Hughes of La Jolla, Calif., a few days before the record breaker.
That baseball went for $186,750. Using the same estimated tax assumptions as in the Murphy case, that produces a tax bill of $44,808.
And remember, we're calculating federal tax liability only. Both Murphy, a New York resident, and Hughes, a Californian, have state income taxes to contend with, too.
500th milestone returned: While it wouldn't have been as lucrative as other baseball memorabilia, a fellow Austinite didn't hesitate to give back a notable home run ball he caught Sunday afternoon.
Will Stewart, an accountant from the Lone Star State's capital, ended up with White Sox slugger Jim Thome's 500th home run ball. Not only was it a milestone, it was a 9th inning walk-off homer. And, to top it off, it was Jim Thome Bobblehead Day at the ball park on the south side of Chicago.
Stewart was in the Windy City for for an accounting conference, but decided to take in a game before getting to work. While the Thome blast wouldn't have brought Bondsian bids, Stewart probably could have pocketed a decent amount if he'd hung onto it.
But the Texan had no qualms about giving the ball back to Thome.
"I feel it is a part of Chicago baseball history," said Stewart.
Estimated reminder: Murphy and Hughes don't have to worry about making estimated tax payments on their money today. Since they got the income in September, it'll count toward the fourth 1040ES payment due Jan. 15, 2008.
But if you got income between June 1 and Aug. 31 for which no taxes were withheld, send in your 1040ES voucher #3 today.