4 ms·
What if I make my own (admittedly very crappy) art? I probably wouldn't be able to get $1 for it because it would be so bad, and it's totally unique so by defi
by magduf 7y ago
What if I make my own (admittedly very crappy) art? I probably wouldn't be able to get $1 for it because it would be so bad, and it's totally unique so by definition it can't be valued by the sale of similar objects on the market (any art is just like this). So should I be forced to pay millions of dollars in taxes on it?
- coldpie 7y agoDon't be absurd. The object in question is not value-less, it is illegal to sell. It's an awkward corner case, not something to get upset about.
- close04 7y agoYour assumption is that the IRS's right to override appraisers comes with a fine print that says "applicable only in an awkward corner case" (in this case "items that cannot be legally sold"). I'm pretty sure if they're indeed allowed to do this and the conditions are defined as narrowly as possible (still to be decided in court I guess) then it can be easily abused. And the article doesn't suggest that such an exception exists. And that's not even discussing yet the process through which an appraisal gets bumped up by over 300% between 2 steps that were both considered to be solid enough to actually be sent out.
- gamblor956 7y agoPlease use some common sense here. If you couldn't even sell it for a $1, then how are you expecting it to be valued at more than $1? The IRS valuation of art and other collectibles is based on polling independent third-parties the likely fair-market value of the art/collectible at issue. If the situation proceeds to court, then they develop a formal appraisal (or occasionally hire an independent third-party appraisal, depending on the item being examined).