Last
week,
baseball
phenom
Shohei
Ohtani
became
the
first
major
league
player
to
start
the
“50-50
club”
by
hitting
50
home
runs
and
stealing
50
bases
in
a
single
season.
With
six
games
left
in
the
season,
he
is
likely
to
reach
55-55
and
maybe
even
60-60.
One
lucky
fan
in
Miami
caught
the
50th
home
run
ball
and
walked
away
with
it
even
though
he
had
the
opportunity
to
give
it
to
the
Dodgers.
No
one
yet
knows
whether
the
lucky
fan
will
keep
the
ball
or
sell
it.
It
could
be
worth
hundreds
of
thousands,
or
even
more
than
a
million
dollars.
With
these
numbers,
the
fan
will
need
to
see
a
tax
professional
because
that
ball
could
come
with
a
huge
tax
bill.
The
value
of
the
ball
will
have
to
be
reported
as
income
for
tax
purposes.
And
if
this
results
in
a
large
tax
bill,
the
fan
might
have
to
sell
the
ball
to
pay
the
taxes.
Also,
if
the
fan
lives
in
California,
he
will
have
to
pay
California
income
taxes
as
well.
The
IRS
is
likely
to
treat
the
ball
as
a
“collectible,”
meaning
that
it
will
be
taxed
at
a
flat
28%
rate.
The
tax
law
doesn’t
define
what
makes
an
item
collectible
but
it
lists
certain
items
such
as
a
work
of
art,
a
rug
or
antique,
any
metal
or
gem,
any
stamp
or
coin,
or
any
alcoholic
beverage.
But
the
law
allows
the
IRS
to
designate
any
tangible
property
as
a
collectible,
so
it
could
do
that
with
Ohtani’s
50-50
home
run
ball.
But
the
real
question
is
what
the
ball’s
value
is.
A
conservative
value
would
be
in
the
mid-six
figures.
Historic
home
run
balls
have
a
precedent
for
selling
for
huge
amounts
of
money.
Mark
McGwire’s
70th
home
run
ball
was
purchased
for
$3.2
million.
Aaron
Judge’s
62nd
home
run
ball
sold
at
auction
for
$1.25
million
although
the
owner
reportedly
turned
down
a
$3
million
offer.
But
Barry
Bonds’s
73rd
home
run
ball
sold
for
only
$450,000,
($517,500
with
commissions)
in
2003.
For
lawyers,
this
is
notable
because
two
people
who
claimed
to
have
caught
the
ball
took
the
matter
to
court.
The
judge
in
the
case
considered
arguments
from
older
property
cases
including
“precedent-setting
fox
hunting
cases”
(likely
Pierson
v.
Post).
The
judge
ultimately
ordered
the
parties
to
sell
the
ball
and
split
the
proceeds.
On
that
note,
it
would
be
hard
to
estimate
a
value.
The
50-50
accomplishment
gained
a
lot
of
attention
and
baseball
pundits
believe
that
this
accomplishment
may
not
be
repeated.
Also,
wealthy
baseball
fans
in
Japan
may
also
want
to
purchase
the
ball,
which
could
make
bidding
more
competitive.
But
as
of
September
25,
2024,
he
has
53
home
runs
and
55
stolen
bases.
Would
the
subsequent
home
run
balls
dilute
the
value
of
the
50-50
ball,
especially
if
Ohtani
gets
his
55th
home
run?
But
there
is
a
hard
number.
A
report
claiming
that
the
Dodgers
offered
the
fan
$300,000
for
the
home
run
ball.
While
many
online
claimed
that
this
number
is
a
lowball,
there
is
no
other
serious
offer.
So
this
could
represent
fair
market
value
and
this
amount
could
be
reported
for
income
tax
purposes.
The
IRS
has
not
issued
guidance
on
how
historic
home
run
balls
will
be
taxed.
The
closest
guidance
was
issued
through
a
nonbinding
notice
in
1998
where
the
agency
explained
the
tax
ramifications
for
home
run
balls
caught
and
then
immediately
returned.
It
stated
that
the
fan
in
these
circumstances
would
not
have
taxable
income
or
gift
tax
liability
because
it
is
equivalent
to
immediately
declining
the
prize
or
returning
unsolicited
merchandise.
The
tax
results
may
be
different
if
the
fan
decided
to
sell
the
ball.
The
IRS
commissioner
said
that
sometimes
the
tax
code
can
be
as
hard
to
understand
as
the
infield
fly
rule
and
that
the
fan
who
gives
back
the
home
run
ball
deserves
a
round
of
applause
and
not
a
big
tax
bill.
The
IRS
might
prefer
to
stay
silent
as
unfair
or
confusing
guidance
on
this
issue
can
draw
the
ire
of
legislators,
some
of
whom
would
love
another
reason
to
reduce
the
Internal
Revenue
Service’s
funding.
When
confronted
with
the
story
of
the
fan
facing
tax
bills
after
returning
Mark
McGwire’s
home
run
ball,
former
Senate
Finance
Committee
chairman
Bill
Roth
(R‑Del.)
complained
that
“the
fact
that
there
was
ever
even
the
possibility
of
Mark
McGwire’s
62nd
home
run
being
taxed
is
a
prime
example
of
what’s
wrong
with
our
tax
system.”
Also,
former
House
Minority
Leader
Dick
Gephardt
said
that
the
IRS
could
turn
a
once
in
a
lifetime
catch
into
a
once
in
a
lifetime
Catch-22.
The
value
of
the
50-50
home
run
ball
is
uncertain
until
the
end
of
the
regular
baseball
season.
But
it
might
be
large
enough
to
warrant
a
significant
tax
bill
for
the
lucky
fan
who
caught
it.
Steven
Chung
is
a
tax
attorney
in
Los
Angeles,
California.
He
helps
people
with
basic
tax
planning
and
resolve
tax
disputes.
He
is
also
sympathetic
to
people
with
large
student
loans.
He
can
be
reached
via
email
at
[email protected].
Or
you
can
connect
with
him
on
Twitter
(@stevenchung)
and
connect
with
him
on LinkedIn.