From the New York Times.
Here is the fan’s fantasy: You go to the ballpark and under a picture-perfect sky not only do the Yankees win, but in recognition of your exemplary behavior, the team also showers you with free season tickets, signed merchandise and a personal audience with the Yankee-est of Yankees, Derek Jeter. The team president hands you his card, with his e-mail address. And here is the reality: The taxman may own a piece of your windfall. And not in tickets, either. He takes only cash.
For Christian Lopez, the 23-year-old fan who came up with Jeter’s 3,000th hit at Yankee Stadium on Saturday, the ramifications of his gift from above are as American as baseball, hot dogs and taxes.
“There’s different ways the I.R.S. could try to characterize a ball caught by a fan in the stands,” said Andrew D. Appleby, a tax associate at the Sutherland Asbill & Brennan law firm in New York who has written about the tax implications of souvenir baseballs. “But when the Yankees give him all those things, it’s much more clear-cut that he owes taxes on what they give him.”
Mr. Lopez, of Highland Mills, N.Y., was seated with his father, Raul, in the left field stands when Jeter drove a 3-2 curveball over the wall. The ball bounced off Raul Lopez’s hands and rolled to the floor, where his son, a former defensive tackle in college, pounced on it. The blast made Jeter only the 28th player to have 3,000 hits, and the first to do so as a Yankee.
Stadium security guards, who had been prepared for the event, whisked Mr. Lopez and his father to the office of the team president, Randy Levine, where officials asked his intentions, according to a team spokeswoman. “He goes, ‘What do you want?’ ” Mr. Lopez said Monday at a Verizon store in Middletown, N.Y., where he works in customer service. “I was like, ‘How about a couple signed balls, some jerseys and bats.’ He said, ‘O.K., I can definitely do that.’ ”
In lieu of such price-setting, the Yankees gave Mr. Lopez four Champions Suite tickets for their remaining home games and any postseason games, along with three bats, three balls and two jerseys, all signed by Jeter. For Sunday’s game the team gave him four front-row Legends seats, which sell for up to $1,358.90 each.
“Pretty clearly he’s going to have to report as income the value of all the stuff he got for the ball,” Professor Caron said. So break out your pencils. On SportsMemorabilia.com, an auction site, baseballs signed by Jeter were being sold for up to $600, jerseys for close to $1,000 and bats for $900.
The tickets to the 32 remaining home games (after Sunday) have a combined face value of $44,800 to $73,600, according to the team’s Web site. The tickets could be worth a lot more if the Yankees play deep into October. Steven Bandini, a tax partner at the accounting firm Zapken & Loeb, said that if the items were valued modestly at $50,000, they would probably carry a tax burden of about $14,000.
“The legal question of whether it is a gift or prize is whether the transferor is giving the property out of detached and disinterested generosity,” Professor Graetz said. “It’s hard for me, not being a Yankee fan, to think of the Yankees as being in the business of exercising generosity to others, but there’s a reasonable case to be made that these were given out of generosity.”
Mr. Lopez said if he had to pay taxes, he hoped he could borrow from his parents rather than sell his memorabilia. He did, however, plan to give a bat and a jersey to his girlfriend, he said. “She’s the one who bought the tickets,” he said. “Jeter said I quote-unquote owe her a lot. I’m going to take his words as advice.”
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