On Saturday at Yankee Stadium, during the spectacle of Derek Jeter achieving his 3,000th hit, Lopez transitioned from being a mere footnote to a central figure by choosing to return the historic baseball to the New York Yankees shortstop instead of selling it for what could have been a six-figure sum. This action sparked an ongoing debate among fans: Would you return the ball, or would you choose to sell it to the highest bidder, with rumors suggesting prices as high as $250,000?
In appreciation for his gesture, the Yankees rewarded Lopez with luxury box tickets for the remainder of the season, along with signed memorabilia including baseballs, bats, and jerseys from Jeter. Furthermore, Lopez was given four premium front-row seats to last Sunday’s Yankees-Rays game.
Sounds like a fantastic haul, right? Absolutely, but alongside those generous gifts comes the obligation to pay taxes. As George Harrison once sang for the Beatles, “Let me tell you how it will be; There’s one for you, nineteen for me. ‘Cause I’m the Taxman.”
The IRS is likely to view the gifts Lopez received from the Yankees as income, which could lead him to owe between $5,000 and $13,000 in taxes, according to the New York Daily News. Meanwhile, the New York Times reports that the face value of the tickets for the remaining 32 regular-season games at Yankee Stadium ranges from $44,800 to $73,600. The newspaper’s conservative estimate puts Lopez’s total tax liability at $14,000.
Nonetheless, Lopez appears undeterred by these financial implications.
If the IRS comes knocking, he states that he will handle the tax payments.
It remains ambiguous whether “they” refers to the IRS or the Yankees in Lopez’s quote. The IRS could potentially ease his burden by categorizing the items he received as gifts rather than income, thereby reducing his tax obligation.
Furthermore, could Derek Jeter or the Yankees step in to cover Lopez’s tax expenses? A tax expert consulted by the Daily News suggested exactly that.
What a downer. Lopez mentioned his hope that his parents would assist him with any tax liabilities he might incur. However, they could justifiably argue that some of the memorabilia — not to mention many of the tickets — might be sold to offset his expenses. (Lopez may find himself compelled to do just that, having informed reporters that he still owes over $100,000 in student loans.)
The idea of Lopez being essentially penalized for what many perceived as a noble and selfless act is a disheartening conclusion to an uplifting tale.
Yet, perhaps there is still a chance for a happy ending.
by Terence Johns
