The price an item sold for in an auction may have been the result of a rigged sale or a mere bidding duel. However, these sources are not always reliable indicators of FMV and should be supported by other evidence.įor example, a dealer may sell an item for much less than is shown on a price list, particularly after the item has remained unsold for a long time. When using one of these price guides, you must use the current edition at the date of contribution.
Publications available to help you determine the value of many kinds of collections include catalogs, dealers' price lists, and specialized hobby periodicals. Therefore, the value of Mary's contribution of the bibles is $10,000, the amount at which similar lots of bibles could be purchased from the promoter by members of the general public. The promoter was a willing seller for $10,000.
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The difference between the two prices was solely at the discretion of the buyer. She purchased the bibles under the second option and, 3 months later, gave them to a church, which will use the books for church purposes.Īt the time of the gift, the promoter was selling similar lots of bibles for either $10,000 or $30,000.
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According to the promoter, Mary could then, within 1 year of the purchase, give the bibles to a qualified organization and claim the full $30,000 retail price as a charitable contribution. The principal and interest on the note would not be due for 12 years. The promoter said that if Mary wanted a charitable deduction within 1 year of the purchase, she could buy the 500 bibles at the “retail” price of $30,000, paying only $10,000 in cash and giving a promissory note for the remaining $20,000. The facts are the same as in Example 1, except that the promoter gave Mary Black a second option.
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