-20-
When we increase the $764,600 total auction price paid for the 13
gemstones by the $95,440 of commissions payable to Christie’s on
the respective sales,11 and then mark up the sum of $860,040
($764,600 + $95,440) to reflect the 15- to 25-percent commissions
referenced by Carmona, we arrive at a range of retail value for
the gemstones from $989,046 ($860,040 x 1.15) to $1,075,050
($860,040 x 1.25). This range approximates the $1.1 million
total fair market value ascertained by Carmona for the 13
gemstones.
We recognize that none of the six assets in question
actually sold at auction for even the lower estimated value
ascertained by Christie’s. We do not consider any of these lower
estimated values to be a proper measure of the price at which a
hypothetical willing buyer and a hypothetical willing seller
would consummate a sale of those assets. The auction was a
single auction that included many precious gemstones and many
valuable items of jewelry. The mere fact that each of the six
assets offered for sale at the auction did not sell there for
even its lower estimated value does not mean under the facts
herein that its fair market value is necessarily less than its
lower estimated value. Cf. CTUW Hollingsworth v. Commissioner,
11 As to the total auction price of $764,600 paid for the
13 loose gemstones, $379,600 was subject to a 15-percent
commission and $385,000 was subject to a 10-percent commission
(($379,600 x .15) + ($385,000 x .10) = $95,440).
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