Barry Bonds, David Wells, and Gift Tax
There's been a lot written about the gift tax ramifications of a fan who catches a "big" home run ball (like a player's 500th career home run ball) and then returns the ball to the player. Something I haven't heard anything about -- are there gift tax ramifications to a baseball player (or any famous person, really) giving an autograph? The thought crossed my mind after reading this article about a rare ball owned by David Wells of the San Diego Padres.
The ball, which Mr. Wells purchased for $7,000, originally bore the signature of Babe Ruth (holder of, among other records, the record for most career homers from 1921 through 1973). Mr. Wells later had Henry Aaron (who broke Mr. Ruth's record in 1974) sign the ball, and now has had Barry Bonds (who just tied Mr. Aaron) sign as well. The question for me is this: did Mr. Bonds' signature add more than $12,000 worth of value to the ball? I don't think it did, but you can see the possibility of an autograph (particularly one given by someone who doesn't often give autographs) would be worth more than $12,000. For instance: what's the value of an autograph by J.D. Salinger? Or an autograph by Thomas Pynchon?
