What's In a Name? Well, if your name is Mark Guthrie, it can mean $300K. Apparently, the Tribune Co., which owns both the Chicago Cubs and Hartford Courant, paid Mark Guthrie $301,000 last October. The only problem - it went to newspaper carrier Mark Guthrie, rather than relief pitcher Mark Guthrie. The team managed to get back most of the money, but now has had to sue for the final $26,000. The newspaper man is holding out on the rest, voicing a concern over potential tax implications.



If the money, which was deposited in October, had carried over into the New Year, then newspaper Guthrie could possibly face taxes on that money. But the issue is not that simple. The team realized its mistake and recalled most of the money in December, meaning Guthrie had no accession to wealth, and thus, no income to be taxed. But the team did not get back all of the money -- only because he refused to give it back. A court could say that he had no legal right to the money, and thus, no accession to wealth. On the other hand, he did keep the money past the end of the year, increasing his overall wealth, if only temporarily. Because he had no right, the money would be taxed as illegal income. This means that Guthrie would get no deduction for returning the money and would take a big tax hit. Thus, by keeping the money and claiming potential tax problems, Guthrie may have in fact created his own tax problems, not to mention a costly lawsuit.



The lesson here: there is no such thing as a free lunch. If you suddenly find $300,000 in your bank account, best to give it back.

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