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Post by CentreHice on Aug 9, 2007 7:08:48 GMT -5
Just heard this on AM 640 news. Worth $600,000. The 22-year old who came up with it, Matt Murphy, is on the hook for taxes of around $210,000, as he just acquired an "asset". If he keeps the ball, he'll have to pay capital gains on the increased value every year.
Does the Canadian tax system work the same way?
What would you fellas do?
1. Sell the ball now and make at least a cool $400,000?
2. Come up with the $210,000 tax bill...keep the ball...and let it appreciate?
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Post by clear observer on Aug 9, 2007 8:10:49 GMT -5
Just heard this on AM 640 news. Worth $600,000. The 22-year old who came up with it, Matt Murphy, is on the hook for taxes of around $210,000, as he just acquired an "asset". If he keeps the ball, he'll have to pay capital gains on the increased value every year. Does the Canadian tax system work the same way? What would you fellas do? 1. Sell the ball now and make at least a cool $400,000? 2. Come up with the $210,000 tax bill...keep the ball...and let it appreciate? I'd accidently "lose" the ball in hopes that somehow, some way, one of my sons miraculously "finds" it in, oh say, 20-25 years. |
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Post by Disgruntled70sHab on Aug 9, 2007 8:57:06 GMT -5
I heard he took his lickin's getting the ball as well. He sustained some injuries and had to be escorted out of the stadium presumably for his own protection.
Cheers.
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Post by Skilly on Aug 9, 2007 9:12:55 GMT -5
I don't think he'd have to pay the taxes unless he sold it, would he? Now here is a question .... how can it be verified that the ball he sells is the actual ball he caught? I mean there isn't any "certificate of authenticity". I do the same as the guy who caught McGuire's ball. Put it for sale on e-bay (with an extra-ordinary high minimum bid) and pray Todd McFarlane comes a-calling.  |
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Post by CentreHice on Aug 9, 2007 10:08:36 GMT -5
I don't think he'd have to pay the taxes unless he sold it, would he? Now here is a question .... how can it be verified that the ball he sells is the actual ball he caught? I mean there isn't any "certificate of authenticity". I do the same as the guy who caught McGuire's ball. Put it for sale on e-bay (with an extra-ordinary high minimum bid) and pray Todd McFarlane comes a-calling. He's on video scrumming for the ball, coming up with it, and being escorted out of the stadium. If I was him, I'd include a copy of that footage in the sale. My certificate of authenticity would be a rider that says if I try to sell another ball, the original purchaser is guaranteed all money back and can sue for damages. Another big sale would be impossible to keep quiet. There will be hoaxes...i.e. pieces of the bat. Caveat emptor. |
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Post by habmeister on Aug 9, 2007 12:11:45 GMT -5
i don't get why he would sell a fake ball? he would get his money either way, but if he did a fake one then how could he prove he still had the real one, and if he claimed it was, nobody would believe that either ball was anymore. his word would be no good.
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Post by Skilly on Aug 9, 2007 14:54:19 GMT -5
i don't get why he would sell a fake ball? he would get his money either way, but if he did a fake one then how could he prove he still had the real one, and if he claimed it was, nobody would believe that either ball was anymore. his word would be no good. Well he says he is going to keep it .... but all I meant was how is the buyer certain. It comes down to trusting a stranger. But let's say he did sell a fake. He gets his million, has the real one in his home ... he says he is keeping it because it is part of the biggest moment in American sports history. So he already has a sentimental attachment to it .... he may never come out and say it is the real one (I wouldn't - a little family secret), but this could be a way for someone to have his cake and eat it too. The way it would be found eventually found out is when someone tested the ball he sold for proof. |
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Post by roke on Aug 9, 2007 15:25:33 GMT -5
I watched a fair number of Giants telecasts leading up to the HR and they mentioned that MLB was using specially marked balls when Bonds was batting. Unless the guy who caught 757 got a hold of a foul ball or a previous HR it'd be very hard for him to sell a fake ball as legitimate.
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Post by CentreHice on Aug 9, 2007 16:53:35 GMT -5
I just heard it again on the radio...if he keeps the ball, he's getting nailed for $210,000 in taxes up front...then on any capital gains as the years go by. I'm not sure about what happens if he sells it. Whatever, the government's getting its cut....and will continue to do so, year after year....sale after sale.
It's like a lottery win or winning prizes on a game show in the States....you pay the tax.
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Post by Skilly on Aug 9, 2007 20:03:40 GMT -5
It's like a lottery win or winning prizes on a game show in the States....you pay the tax. I've heard horror stories of Canadiens that won on a game show in the States and got dinged on taxes crossing the border. I remember someone from NL winning on the Price is Right and had to sell all the things they won to pay the duty to cross the border. In Canada, lottery wins are tax free .... you only pay taxes on the interest. |
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Post by Cranky on Aug 10, 2007 0:33:53 GMT -5
It's like a lottery win or winning prizes on a game show in the States....you pay the tax. I've heard horror stories of Canadiens that won on a game show in the States and got dinged on taxes crossing the border. I remember someone from NL winning on the Price is Right and had to sell all the things they won to pay the duty to cross the border. In Canada, lottery wins are tax free .... you only pay taxes on the interest. Lottery wins are NOT tax free. The government skims everything off the front end. So if your group wins $100,000 between ten people, instead of a negligible tax going back to the government, they can skim a far larger percantage off the top and there is nothing you can do about it. BTW, I did a cursory google search and I have yet to find what percentage the government takes off the top on lottaries. Interesting lack of information...... |
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Post by Disgruntled70sHab on Aug 10, 2007 6:32:18 GMT -5
It's like a lottery win or winning prizes on a game show in the States....you pay the tax. I've heard horror stories of Canadiens that won on a game show in the States and got dinged on taxes crossing the border. I remember someone from NL winning on the Price is Right and had to sell all the things they won to pay the duty to cross the border. In Canada, lottery wins are tax free .... you only pay taxes on the interest. A fisherman won $12 million in the NY State lottery a few years back. He made a gentleman's bet with another fisherman that if he won the lottery he'd give him $500,000. The US government took 50% and after paying off his gentelman's bet he had $5.5 million left. In Canada I've never heard of the government taxing lottery winnings; like you said only the interest. I don't know how many times I've seen announced that lottery winners who win, say, $5,000,000 and when they receive the check it's actualy something irregular, but rarely the exact monetary amount shown. I knew an older soldier here in Kingston who won $500,000 on Lottario (sp?) and it was all his. The next time I saw him we had coffees ... I bought ... he hadn't changed a bit. Cheers. |
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Post by Skilly on Aug 10, 2007 8:04:19 GMT -5
I've heard horror stories of Canadiens that won on a game show in the States and got dinged on taxes crossing the border. I remember someone from NL winning on the Price is Right and had to sell all the things they won to pay the duty to cross the border. In Canada, lottery wins are tax free .... you only pay taxes on the interest. A fisherman won $12 million in the NY State lottery a few years back. He made a gentleman's bet with another fisherman that if he won the lottery he'd give him $500,000. The US government took 50% and after paying off his gentelman's bet he had $5.5 million left. In Canada I've never heard of the government taxing lottery winnings; like you said only the interest. I don't know how many times I've seen announced that lottery winners who win, say, $5,000,000 and when they receive the check it's actualy something irregular, but rarely the exact monetary amount shown. I knew an older soldier here in Kingston who won $500,000 on Lottario (sp?) and it was all his. The next time I saw him we had coffees ... I bought ... he hadn't changed a bit. Cheers. My landlord won $600,000 thousand about 7 years ago. She never paid any taxes. She put it in the bank and then withdrew a huge chunk of it to go on a spending spree ... (not sure if that was deliberate to avoid taxes on the entire amount or not). The reason the lottery winnings in Canada are irregular numbers is because the amount posted is the minimum winnings. If more people play than anticipated the win is more and an irregular number ... you'll never see it for less than the posted winnings. Interest in Canada is taxable .... we all get the little receipt from the bank every year with "Interest Accrued" and place it in the line called "Interest Income". Lottery Winnings are not tax deductible, if they were than whenever anyone won $100 on a scratch ticket you'd have to pay taxes since any source of income over $50 is supposed to be declared as income (or so Revenue Canada told me once). |
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