Up to $14K in taxes? FAIL NY!

http://espn.go.com/blog/new-york/yankees...alks-taxes

No good deed goes unpunished.

I'm sure the Yanks will pay it off. No way they let this turn into bad press. I could also see Jeter paying it off himself to return the gesture. Although if he is left with the burden I will lose much respect for the orginization. You can say what you will about George Steinbrenner but if he were alive he would pay this.

(07-12-2011 02:43 PM)OrangeCrush22 Wrote:  I'm sure the Yanks will pay it off. No way they let this turn into bad press. I could also see Jeter paying it off himself to return the gesture. Although if he is left with the burden I will lose much respect for the orginization. You can say what you will about George Steinbrenner but if he were alive he would pay this.

Agree totally. I can't imagine that the Yankees won't find a way to take care of this. And I could certainly see Jeter doing it as well.

Not sure how this is taxable... The fan in question returned NY Yankees property to the club. No taxable transaction there. The NY Yankees GAVE this fan several gifts. Not sure how NY tax code works, but in most states the giver is responsible fore all taxes on gifts of a taxable amount. AS for Federal taxes a good tax attorney should be able to make the case I outlined.

(07-12-2011 03:37 PM)Owl 69/70/75 Wrote:  

(07-12-2011 02:43 PM)OrangeCrush22 Wrote:  I'm sure the Yanks will pay it off. No way they let this turn into bad press. I could also see Jeter paying it off himself to return the gesture. Although if he is left with the burden I will lose much respect for the orginization. You can say what you will about George Steinbrenner but if he were alive he would pay this.

Agree totally. I can't imagine that the Yankees won't find a way to take care of this. And I could certainly see Jeter doing it as well.

I've always wondered how this works. Once the Yanks pony up the additional $14k, isn't that itself taxable, so the total they'd have to pony up becomes something around $20k total just to make the gift to truly remain a gift?

(07-12-2011 10:42 PM)I45owl Wrote:  

(07-12-2011 03:37 PM)Owl 69/70/75 Wrote:  

(07-12-2011 02:43 PM)OrangeCrush22 Wrote:  I'm sure the Yanks will pay it off. No way they let this turn into bad press. I could also see Jeter paying it off himself to return the gesture. Although if he is left with the burden I will lose much respect for the orginization. You can say what you will about George Steinbrenner but if he were alive he would pay this.

Agree totally. I can't imagine that the Yankees won't find a way to take care of this. And I could certainly see Jeter doing it as well.

I've always wondered how this works. Once the Yanks pony up the additional $14k, isn't that itself taxable, so the total they'd have to pony up becomes something around $20k total just to make the gift to truly remain a gift?

The gift tax is applied to the donor, not the donee. That's if the donor is an individual, I'm not sure how it works if the donor is a business entity. I'm thinking they might have to treat it as compensation, probably 1099 rather than W-2 since he's not performing any services for them. In that case, you are correct, they'd just gross it up to cover the tax.

If it's a gift, the Yankees give him the $14,000 and they pay the tax, which porobably is about $6,000.