wistahpatsfan

The IRS should be scrapped. The tax code is tyrannical because no one understands it except for accounting majors and lawyers. They have set up the code to support themselves and keep the unwashed masses from getting anywhere. It's no different than the bible in the middle ages when only monks and royalty could read.

Consumption tax NOW. Sorry accountants of America-you're going to have to find something useful to do.

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BSR

He will have capital gains tax on it if he does sell the asset for an amount above his basis. If it is below he will have a capital loss. His basis will be the income he had to recognize as a result of being awarded the assets. He didn't acquire the assets through purchase. Put another way, if I provide plumbing services to a client and he pays me Patriots tickets should I effectively be able to avoid taxes on my earnings because I use the tickets instead of sell them?

BSR

What makes you think you can ever get rid of the IRS or accountants? Sorry, I don't care what type of fool proof tax mechanism you think you can create but I am sure there is a way to cheat it. People always talk about the simplicity of flat tax because it is just a simple percentage of income. As this thread illustrates the definition of income is itself a challenge.

JackBauer

While I agree that the tax code is unnecessarily Byzantine, I don't think a consumption tax is the way to go.

PatriotsReign

I don't even think my company officially buys the tickets. I live in Massachusetts and my co. is based in California. I support a few other employees who are also based in New England and they buy them.

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Real World

No one has a problem with a CEO being taxed. That's a poor example imo.

You're certainly entitled to your opinion, but I don't think it can be certified that it's a reward. There's no sign posted nor any public mention of one for turing the ball in. It is a gift as much as it is anything. The point is that it's a matter of personal perception or opinion as to what it is. What you see as a reward, I see as a gift, and the next person sees as a prize. Time will tell how the IRS sees it. To me, were I the IRS, I'd call it a gift and move on. There is no appreciable gain to Lopez here. Free tickets to the game don't really do anything of value for him. Were it a tangiable long term good, or cash, then fine. We'll soon find out what they rule, but to me, I'd let it be.

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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897

Real World

That's entirely different than the situation here. No service was provided. There was no expectation of payment from either party. It was simply a gesture of good will followed by another.

If you come to my restaurant and save a choking customer, or disarm a robber, and as a result I cuff your meal, you're saying you should report that meal as income, or the IRS should tax you over it.

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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897

PatriotsReign

Your example and the one of the fan who caught the ball are 2 prime examples of NON-TAXABLE situations.

To tax either one would be just plain stupid. No one gains one cent of wealth by being given free tickets to a ball game or a free dinner.

We need to stop/end tax codes like this.

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chicowalker

PR (and RW), what might be useful to the discussion is understanding why you think it shouldn't be taxable. Is it that the asset isn't liquid, the value of the asset, both or other?

When we talk about tickets to a ballgame as a perq from a company, I think it seems petty to be taxing it, mainly because of the dollar amount. But if the "perq" were instead a luxury box for all home games, I would think it should be taxed. Not sure whether you agree with that example.

PatriotsReign

I know luxury boxes are tax-deductable for a business....kinda strange, huh?

If I get invited to that box for 2-3 games and attend, no, I don't think I should be taxed on it. But maybe it shouldn't be tax-deductable?

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