Estate of Emanuel Trompeter, Deceased, Robin Carol Trompeter Gonzalez and Janet Ilene Trompeter Polachek, Co-Executors - Page 24

          personal property is its retail sales price.  By extension of               
          this presumption, the fair market value of an item of tangible              
          personal property not sold at auction could be presumed to be no            
          greater than its high bid at auction.                                       
               We do not believe that the presumption of Rev. Proc. 65-19,            
          supra, applies to set conclusively the fair market value of the             
          six assets in question.  Five of those assets are items of                  
          jewelry.  We find pursuant to Carmona’s testimony that the public           
          does not frequently purchase jewelry at auction.  As to the sixth           
          item, a loose 18.2-ct. sapphire, we are unable to find in the               
          record that loose sapphires are typically sold to the public at             
          auction.  However, even if the presumption were to apply to one             
          or more of these six assets, we conclude from the record that the           
          high bids for those six assets are not reflective of their retail           
          sales price.  We bear in mind especially our findings herein as             
          to the much higher prices which the decedent paid to Mamiye and             
          Lloyds for the comparable and other items shown on the receipts.            
               We recognize that respondent stipulated that the applicable            
          values of 19 of the 25 seized assets were the same as their                 
          auction prices and that those prices were in most instances lower           
          than Carmona’s appraised values.  In valuing the assets in                  
          dispute, we do not find in the record that respondent has                   
          presumed under Rev. Proc. 65-19, 1965-2 C.B. 1002, that the fair            
          market values of the 19 assets equaled their auction prices.  In            

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