Estate of Emanuel Trompeter, Deceased, Robin Carol Trompeter Gonzalez and Janet Ilene Trompeter Polachek, Co-Executors - Page 25

          fact, given that the auction prices stipulated by respondent did            
          not reflect the commissions paid by the buyers, we conclude to              
          the contrary.  See Estate of Scull v. Commissioner, T.C. Memo.              
          1994-211 (when the appropriate retail market for an item is the             
          auction, the fair market value of an auctioned item equals its              
          auction price plus buyer’s commission).  See generally 2003 Fed.            
          Tax Coordinator 2d (RIA), vol. 21, par. P-6009, at 42,252.  More            
          importantly, the fact that these assets sold at auction,                    
          presumably to dealers, suggests in this case that respondent’s              
          pursuance and the Court’s redetermination of a fair market value            
          for any of the 19 assets greater than its auction price would               
          have made little or any difference in the deficiency in that the            
          estate would have been entitled to deduct the additional value as           
          an administration expense.  See sec. 20.2053-3(d)(2), Estate Tax            
          Regs.; see also Estate of Joslyn v. Commissioner, 566 F.2d 677              
          (9th Cir. 1977), revg. 63 T.C. 478 (1975).                                  
               B.  Assets Disputed as to Fair Market Value and Inclusion in           
          The Taxable Estate                                                          
                    1.  Overview                                                      
               The decedent was a longtime, avid collector of various                 
          valuable items which included specially minted, limited edition             
          gold coins, precious gemstones, expensive jewelry, exquisite rugs           
          and furniture, and guns.12  He was a wealthy man who enjoyed the            

               12 The decedent’s guns (approximately 10) were not as                  

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