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issues for sale in the retail market. Petitioners claim that the
appropriate market is the retail market because the newspapers
and comic sections could have been sold to individuals interested
in obtaining specific issues or comic strips. Petitioners also
claim petitioner and Mr. Fagliano were not the ultimate consumers
of the newspapers because they did not purchase the newspapers
and comic strips for their own use or subsequent donation.
Petitioners contend that the newspapers were purchased with an
intent to sell individual issues to consumers interested in
purchasing birthday and anniversary issues, or specific comic
strips.
In Anselmo v. Commissioner, 80 T.C. at 872, we were required
to value a donation of 461 low quality gemstones. Jewelry stores
would generally not sell the gemstones to individual purchasers
but would incorporate the gemstones into separate pieces of
jewelry. See id. at 877-878. We rejected the taxpayers’
contention that the stones should be valued individually, based
on the price that each individual gemstone would sell for in
retail jewelry stores. See id. at 881. We found that such
stones were not commonly sold to individual purchasers but rather
that the appropriate market for sale was to retail jewelers for
use in the manufacture of jewelry. See id. at 882. We reasoned
that no one farther down the distribution chain would purchase
the gems in their unmodified state and that the gemstones were
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