What's the value of an unsellable item?

#1
utvolpj

utvolpj

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#1
Pair inherits $65M sculpture, but can't sell it to pay $29M tax bill | Fox News

Illeana Sonnabend, who died in 2007, left an art collection worth an estimated $1 billion. But one item in particular, Robert Rauschenberg's “Canyon,” is an heir's nightmare, a lawyer's dream and an IRS conundrum. The bequest comes with a $29 million tax bill, but since the piece includes a stuffed eagle, it can't be sold.
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Placing a value on an item that cannot be sold is no easy feat. The venerable auction house Christie’s placed the value of "Canyon" at zero. The IRS initially put it at $15 million, then jumped the figure to $65 million when Sundell and Homem refused to pay, according to The New York Times.


The IRS, which declined to comment on the matter, is not only asking for $29 million in taxes, but also an $11.7 million “gross valuation misstatement” penalty, according to Forbes.
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how do you put a value on an item when there is no way it can ever be sold? Seems the IRS is full of art experts
 
#3
#3
ill give emm 10 bucks for the eagle.
then burn it at an auburn tailgate party.
 
#4
#4
If it's illegal to convey, how did they inherit it?

At any rate, they should just donate it to a museum.
 
#7
#7
You would think the inability to sell should drop the value tremendously, i.e. zero. I would put it up for auction - anyone who can legally buy it gets it at the highest offered price. Since no legal buyers, the market value is zero.

Or would that be considered an offer to sell illegal goods causing the seller to be arrested?
 
#8
#8
vols4sure said:
You would think the inability to sell should drop the value tremendously, i.e. zero. I would put it up for auction - anyone who can legally buy it gets it at the highest offered price. Since no legal buyers, the market value is zero.

Or would that be considered an offer to sell illegal goods causing the seller to be arrested?
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Just read the article and looks like they essentially did that as the auction house gave it a zero value.

Screw the IRS.
 
#9
#9
Velo Vol said:
If it's illegal to convey, how did they inherit it?

At any rate, they should just donate it to a museum.
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doesn't change the tax liability since the deduction for donations will occur at a considerably lower rate than estate tax rate.
 
#10
#10
$65 million? Yeah, that looks about right...
Robert_Rauschenberg's_'Canyon',_1959.jpg
 
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