Jerrold E. and Helen C. Arbini - Page 20

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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               
               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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