Skip to comments.Steelers coach sells Mercedes to team cafeteria worker for $20
Posted on 08/04/2011 10:25:56 AM PDT by Wolfie
Steelers coach sells Mercedes to team cafeteria worker for $20
A cook at the Pittsburgh Steelers team complex is driving around in a red Mercedes convertible thanks to an unexpected and generous deal from the franchise's former secondary coach.
On his final day in Pittsburgh before taking over as defensive coordinator for the Arizona Cardinals, Ray Horton gave his 1999 Mercedes SL500 to cafeteria worker Maurice Matthews.
The cook had always kidded around with Horton, telling him he was coaching his position and asking when he'd be allowed to drive his sports car. Horton would jokingly reply, "you can't afford the gas in it."
But on his final day in Pittsburgh, Horton approached Matthews to say goodbye and asked if he could borrow whatever money he had in his pocket. When Matthews handed over a twenty, Horton said "sold for $20!" and handed him the keys to his car.
(Excerpt) Read more at sports.yahoo.com ...
Edmunds says the true market value is $10,688.
It is a gift and there is not tax to either the giver or recipient since the value is under the gift limit.
Our state changed how they do things. They used to accept $1 sales for vehicles. Now they set a limit on how low a vehicle can sell for. Don’t recall but think at $100.
The DMV will get their tax.
Exactly! Just like all those people in Oprah’s audience who found out they had to pay the taxes on the new cars she gave them.
Wait till the IRS knocks on his door
Not to mention the Commonwealth of PA and Allegheny County.
They ain’t walking away with 7% sales tax on twenty bucks.
“not” = “no”
The IRS cannot do anything about it. He didn’t get the car for nothing, he paid 20 bucks for it. If he sells it for more than 20, then he has to declare the profit, other than that he is within the law, which is why the guy “sold” him the car instead of giving it to him, which would have cost him plenty in taxes.
Gift taxes are the responsibility of the giver.
The state may want to collect sales tax on the actual value.
The IRS (and state) may treat the transfer in excess of payment as imputed income, since they have effectively an employer-employee relationship. The recipient has a good argument that this has nothing to do with compensation for work, or an employment bonus.
Gift and estate taxes are relevant, until coach dies.
The story is a beautiful one. The comments about the taxes is a reflection on our tax system that is 1) confiscatory 2) arbitrary/ open to interpretation 3) unfair in any sense of the word. It is amazing that generosity would be taxed. But I believe this is no less different than the estate tax where the generosity to relatives is taxed. Render unto Ceaser...