- 34 -
Warren considered the collection as a whole to have little
intrinsic value because it consisted of “minor or unknown films
released by United Artists”. He evaluated the collection as
little more than a hoard, virtually unsalable within a short
period of time, even at distress sale prices in the convention
market. Warren also discounted the overall value of the
collection because it consisted mostly of stills, pressbooks, and
lobby cards, which he considered to be of the lowest value to a
collector. Based upon these foregoing considerations, Warren
assigned values as low as 25 cents to individual items. Warren’s
base value for a one-sheet was $1. His highest single assigned
value for a one-sheet was $75 for “Thunder Road”. Warren
appraised the collection at the time of its donation to AMMI in
1985 at $5,733.49.
3. The Relevant Market
Selection of the proper market for valuation purposes is a
question of fact. Anselmo v. Commissioner, 757 F.2d at 1213. In
determining the appropriate market to use in valuing most types
of property, a sale “to the public” normally refers to a sale to
the retail customer who is the ultimate consumer. Lio v.
Commissioner, 85 T.C. at 70; Anselmo v. Commissioner, 80 T.C. at
882. A sale to an ultimate consumer is any sale to those persons
who do not hold the item for subsequent resale. Goldman v.
Commissioner, 388 F.2d 476, 478 (6th Cir. 1967), affg. 46 T.C.
136 (1966). However, when used in this context, the term
Page: Previous 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 NextLast modified: May 25, 2011