What are the tax consequences for the fan in given cases

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Reference no: EM131500371

Question: An interesting set of tax questions came up in 1998 when baseball stars Mark McGwire and Sammy Sosa were getting close to breaking the record for the number of home runs during a single season. Assume for this discussion that the home run ball that broke the record would be worth $1 million. In each case below, what are the tax consequences for the fan who catches the ball?

a. The fan gives the ball back to the player who hit it.

b. The fan keeps the ball and holds onto it until he dies.

c. The fan gives the ball to a charity and the charity sells the ball for a profit.

d The fan sells the ball immediately.

e. The fan sells the ball after holding it a year.

Reference no: EM131500371

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