Catching No. 62 Could Be Taxing

When some fan snags Mark McGwire’s historic 62nd home run ball, the Internal Revenue Service will be taking note.

According to the IRS, if the fan returns the ball to McGwire the fan may be asked to pay a federal gift tax if the historic ball is determined to be valued at more than $625,000--even if the fan doesn’t get any money for it.

“The giver is responsible for paying any applicable tax on any large gift,” IRS spokesman Steven Pyrek said Monday.

A gift tax applies to any property given away that is worth $10,000 or more. It makes no difference to the IRS whether the gift is cash, a piece of jewelry or a record-setting baseball shagged by a bleacher fan.

Under the federal tax code, the first $625,000 would be exempt because of the lifetime tax credit provided every individual. So if the ball is deemed to be worth $1 million, the fan would owe at least 40% of the remaining $375,000, or $150,000, to the government.

Whoever catches McGwire’s 62nd home run ball will have a number of options:

* Keep the ball. The fan owes no tax immediately, but the ball will become part of his estate, and be taxable after death.

* Sell the ball. The fan would owe taxes on any profit.

* Give it away. The fan would face a 40% gift tax.

The only way to avoid the IRS would be to give the ball to a charity, which in turn would not have to pay a tax if it sells the ball for a profit.