Playing ball with the IRS

Apparently, the guy that caught Barry Bond's record breaking home run ball joined a new tax bracket just by coming up with the ball.

ESPN is reporting that once the kid took possesion of the ball, he is automatically liable for taxes on the worth of the ball. Even if he doesn't sell it, he could be forced to pay taxes in upwards of hundreds of thousands of dollars, plus additional capital gains taxes when he sells it. Quoting the article:

By most estimates, the ball that put Bonds atop the list of all-time home run hitters with 756 would sell in the half-million dollar range on the open market or at auction.

That would instantly put Murphy in the highest tax bracket for individual income, where he would face a tax rate of about 35 percent, or about $210,000 on a $600,000 ball.

"It's an expensive catch," said John Barrie, a veteran tax lawyer with Bryan Cave LLP in New York who grew up watching the Giants play at Candlestick Park. "Once he took possession of the ball and it was his ball, it was income to him based on its value as of yesterday,"

Even if he does not sell the ball, Murphy would still owe the taxes based on a reasonable estimate of its value, according to Barrie. Capital gains taxes also could be levied in the future as the ball gains value, he said.

On the other hand, he said, if the ongoing federal investigation into steroid abuse among professional athletes takes a criminal turn for Bonds, the ball's value could go down -- which would likely allow Murphy to claim a loss.

Is it me or does this sound really ridiculous?