- 10 -
Cartwright, 411 U.S. 546, 551 (1973); Collins v. Commissioner,
3 F.3d 625, 633 (2d Cir. 1993), affg. T.C. Memo. 1992-478; Estate
of Hall v. Commissioner, 92 T.C. 312, 335 (1989).
On the evidence before us in these cases, the best
indication of the fair market value of the jewelry inventory
transferred to Khalaf is found in the representations of value
set forth in Al Zuni's and in American Silver’s documentation
relating to the transaction at issue in these cases, particularly
the minutes of Al Zuni’s September 15, 1992, board of directors’
meeting which reflect a value for the jewelry inventory
transferred to Khalaf of $671,413.
At trial, Khalaf opined generally as to the decline during
the 1980's in the value of Native American jewelry to the effect
that such jewelry purchased in the early to mid-1980's would, in
1998 (at the time of the trial), be worth only 10 to 30 percent
of what it had cost. Khalaf did not opine as to the general
value of such jewelry in 1992.
We note that at trial neither party provided timely
independent expert witnesses as to the value of the jewelry
transferred to Khalaf. Even if experts had been called, due to
Al Zuni’s and Khalaf’s failure to have available a written
inventory, books and records, or other documentation describing
the specific items of jewelry transferred to Khalaf, such experts
would not have had sufficient information to make professional
valuations of the jewelry inventory transferred to Khalaf, and
their testimony would not have been helpful.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011