-24-
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
(continued...)
Page: Previous 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 NextLast modified: May 25, 2011