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USPAP Complete packet
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BACKGROUND INFORMATION USPAP
CITY: ______________________________ DATE: _____________________________
PLEASE NOTE THAT UPON SUCCESSFUL COMPLETION OF THIS USPAP COURSE, YOUR CERTIFICATE WILL BE SENT TO THE FOLLOWING ADDRESS.
NAME _________________________________________________________________________________________ ADDRESS ______________________________________________________________________________________ CITY _____________________________________________ STATE ________________ ZIP __________________ HOME PHONE ________________________________ BUSINESS PHONE ________________________________ OTHER PHONE ___________________ EMAIL (WRITE NEATLY) ________________________________________ PRESENT OCCUPATION _________________________________________________________________________ HIGHEST DEGREE OF EDUCATION: SPECIFY FIELD _______________________________________________ COMPUTER EXPERTISE LEVEL (circle) Professional High Average Minimal None WHEN DID YOU LAST TAKE USPAP? ______________ WHAT IS YOUR BACKGROUND IN APPRAISING? WHAT IS YOUR AREA OF SPECIALIZATION? ____ Generalist _____ Photography ____ Fine Arts _____ Tribal ____ Decorative Arts _____ Oriental ____ Jewelry _____ Judaica ____ Collectibles _____ Textiles ____ Paintings _____ Prints ____ Other ______________________ HOW MANY YEARS HAVE YOU BEEN A MEMBER OF AAA? ________ HOW MANY YEARS HAVE YOU BEEN A MEMBER OF ASA? ________ HOW MANY YEARS HAVE YOU BEEN A MEMBER OF ISA? ________ DO YOU WANT TO BECOME A MEMBER OF AAA? ___________ ARE YOU A MEMBER OF OTHER PROFESSIONAL ART, ANTIQUE, DEALER, OR APPRAISAL ASSOCIATIONS? PLEASE SPECIFY. WHAT IS YOUR OBJECTIVE IN TAKING THIS COURSE (check as many as apply and be as specific as possible): ____ Exploring career alternatives ____ Want to update appraisal skills ____ Want to establish an appraisal business part-time ____ Want to establish an appraisal business full-time ____ Want to appraise as an adjunct profession ____ Want to be a dealer ____ Want to expand skills to be applied in another field (insurance, law, accounting, etc.) ____ Other: _______________________
GAYLE M. SKLUZACEK, AAA Principal Appraiser, Fine Art Specialist, and Review Appraiser, Abigail Hartmann Associates, New York Appraisal experience: Paintings, works on paper, prints, posters, sculpture, photographs, art glass, art ceramics,
architectural interiors, textiles, rugs, Americana, Japanese prints, manuscripts, books, Judaica, Orientalia, tribal art, Pre-Columbian art, collectibles, artists’ estates, archives, antique furniture, porcelain, silver, general contents
Specialization: European art, 15th - 20th century
American art, 17th - 20th century (certified) Prints, 20th century, American (certified) Wine (certified)
Education: AQB Certified USPAP Instructor, Certified through June 2009
The Appraisal Foundation, Washington, D.C.
Uniform Standards of Professional Appraisal Practice Tested and Passed, May 1994, June 1999, June 2004
Master of Arts Degree Program, Art History Department University of Chicago (Thesis: Marguerite Gerard)
Graduate Department of Architectural History University of Minnesota (Thesis: Bernini)
Bachelors of Art, Art History Department Barat College, Lake Forest, Illinois
Professional Affiliations: Appraisers Association of America (AAA), Certified Member
International Society of Appraisers, Member International Foundation for Art Research Cooper-Hewitt Museum, New York Metropolitan Museum of Art, New York Museum of Modern Art, New York National Museum of Women in the Arts, Washington, D.C. Whitney Museum of American Art, New York Les Amis du Vin
Ms. Skluzacek has worked in curatorial, research, and public relations positions at the Minneapolis Institute of Fine Arts, the Chicago Art Institute, the Oriental Institute, and the Carnegie Institute. In 1981, she became involved in art appraising where she has catalogued important collections, estates, and archives, identified lost masterpieces, served as an art/personal property expert in court cases, including IRS cases, and has worked closely with major museums in their art acquisition programs. She has taught art and wine collecting/appraising courses for the NYC Board of Education and the NJ Center for the Arts. Since 1995 Ms. Skluzacek has been on the faculty of FIT's Graduate School, teaching Valuation and Appraisal. She has been on the faculty of NYU's Appraisal Studies Department since 1992, where she teaches American Art and Research Methods for Appraising. Through NYU and the AAA, Ms. Skluzacek coauthored and taught the first course on Uniform Standards of Professional Appraisal Practice (USPAP) to personal property appraisers in the US. In 2001 she was invited by the Cuban government to teach a course on appraising in Havana. Currently she is working with Florida State University to develop an international online accredited course for appraisers. Ms. Skluzacek was elected to the Board of Directors of the AAA in 1992 and has been an officer of the AAA since 1994 where she served as President in 2000-2002. She is listed in Who's Who of American Women, Who's Who of Emerging Leaders in America, and Who's Who in Society.
386 Park Avenue South, Suite 2000 New York, NY 10016
Tel 212 889 5404 Fax 212 889 5503
Email: [email protected] Website: www.appraisersassoc.org
POSITION PAPER OF THE AAA on
PROFESSIONAL OPINIONS OF VALUE (POVs) Over the past few years many members of the Appraisers Association of America have been requested to give estimates of value which are different from and do not meet the minimum standards of formal appraisals. These requests for verbal or written estimates have come from a variety of sources: television or other forms of popular media such as The Antiques Road Show or “Ask the Experts" columns in newspapers and magazines; or in the form of internet inquiries in which a client will submit a digital image and the appraiser is asked to give an estimate of value based on the quality of the image submitted. Other situations in which such opinions of value are required include: pre-sale estimates from auctioneers, initial consultations with clients, and internal review of appraisal documents for third parties such as insurance companies, et al. Such forms of valuation clearly do not meet the standards of written or verbal appraisals where the appraiser has the time to perform an acceptable inspection, has time to research the object(s) in question and has time to describe the most appropriate market for sale or purchase among other essential valuation factors.
The AAA recognizes that while such estimates of value do not meet appraisal standards they are a reality of life in the 21st century where clients want pricing information quickly, and requests for this type of information will only proliferate as new technology is introduced in years to come.
With this in mind, the Board of Directors of the AAA, after great deliberation, has decided to allow its members to perform such services without being subject to a violation of the AAA Code of Ethics, providing certain conditions are met.
Definition of Service:
Foremost of these conditions is that the type of service performed is clearly defined and in no way could or should be confused with an actual appraisal. For this reason the AAA suggests that these types of estimates be called Professional Opinions of Value (POVs), a term which has no written or audible similarity to "appraisal." In order to distinguish a POV from a formal appraisal, the appraiser may wish to state the value as a range instead of a fixed amount. The client should be informed that the work product of the appraiser is not an appraisal, but something distinct and less than a formal appraisal due to the extraordinary limiting conditions under which such professional services are offered. The client should be informed further that the POV is a work product that is not necessarily based on first-hand
inspection, that it is not fully researched, that it is not intended for anything other than informational use, and specifically not intended for important tax or financial purposes, that it does not take into account specific market issues or trends, or any other important criteria that can affect value. It is only an opinion professionally rendered, but not duly and fully researched.
In order to protect the appraiser, the AAA recommends that the client signs an acknowledgment form in which
(i.) the professional services are clearly defined as to what they are and what they are not, and (ii.) the client waives any claim of any kind or nature against the appraiser arising from the POV.
As with formal appraisals, members of the Appraisers Association of America are prohibited in basing their fees for POVs on a percentage of the value of the object.
Potential Liability:
Notwithstanding such disclosure and waivers, the AAA counsels its members that there is potential liability in offering such services. Clients have been known to withhold information from appraisers and to hear only that which they wish to hear. Appraisers have been sued when clients are unable to sell their property at given value and appraisers have often been forced to defend frivolous charges, either through actual litigation or through complaints to ethics committees of professional associations. Defense of such complaints can be time consuming, emotionally exhausting and often, a financial burden.
Divergence from USPAP:
The AAA recognizes that under the Uniform Standards of Professional Appraisal Practice (USPAP) the type of work product referred to above as a POV constitutes an appraisal and as such should conform to USPAP. A POV as outlined above does not conform to USPAP.
The AAA has chosen to differ with the Appraisal Foundation and the Appraisal Standards Board (ASB) on this point and feels that it would be timely for the Appraisal Foundation to acknowledge that performance of such services should be permissible providing they are defined in the manner stated above.
In the past the Appraisal Foundation has received numerous requests from both real estate and personal property appraisers to recognize and to allow work products such as POVs, but to date it has taken no action in doing so.
While real estate appraisers are subject to state licensing criteria, personal property appraisers belong to a "self-regulated" profession with standards set by individual associations. While the AAA obliges all its members to write their appraisals according to USPAP, recognition of POVs as an acceptable work product, under the conditions outlined above, will allow AAA members to perform such services without professional sanction from the AAA.
February, 2001
USPAP Language for your Business Documents When you reference USPAP in any of your documents, you should not use the phrase "USPAP-certified" as this is NOT permitted by The Appraisal Foundation; you may use the phrase "USPAP-compliant" or even better, use the following phrase: "Successfully completed a 15-hour course and examination on the Uniform Standards of Professional Appraisal Practice (USPAP), the Congressionally-recognized set of appraisal standards promulgated by The Appraisal Foundation. Completed in DATE HERE, effective through DATE HERE (which is 5 YEARS after COMPLETION)."
LONG CASE STUDY 1 Connie Sewer, an Art History major in college and an NYU appraisal studies student, attended an onsite catalogued house auction for a large estate in Grosse Point, Michigan in 2002. The auction was conducted by Hugh Byatt Auctions, an established Chicago auction house. At the preview she saw a 19th century genre painting, signed Zampighi (Eugenio Zampighi, Italian genre painter, 1859-1944). Connie thought it rather sweet and investigated the work. She was told by an employee of the auction house that the painting had been in the family for many years. The deceased was 90 years old when he died. He had been ill for at least 15 years and done his collecting many years prior to his illness. She was also told that an "independent appraiser" was available for consultation. She should check the auction catalogue for the times he was scheduled to be onsite. Connie checked the catalogue and noted that the appraiser, Sly Himes, a senior member of ASA and a member of the AAA was scheduled to be at the house all afternoon. She returned in an hour and met with the appraiser. Himes provided her with a photocopied page of Zampighi's sales results from Hislops’ Art Sales Index. The auction records indicated that some of Zampighi works of comparable size had sold in the $20,000-40,000. range. Himes indicated that the painting was in pristine condition and had never been retouched. The painting was estimated at $15,000-25,000 in the catalogue. Himes told Connie that he felt the decedent's family would take a lower bid because they wanted to sell everything quickly. Himes also offered to write an appraisal for the painting after the sale at no charge. Connie was the underbidder at $7,500; she lost the painting to a phone bid. She returned home, momentarily disappointed, but quickly forgot about the sale. Three days later she received a phone call from Hugh Byatt Auctions. They told her that the successful bidder failed to pick up the painting and that it could be hers for her final bid - $7,500 plus the usual premium and tax. Connie was thrilled. She immediately got a cashier's check for the amount and picked up the painting. She returned home and examined the painting with her black light. She saw several areas of inpainting and noticed that the faces of the young couple were rather amateurishly executed and that the background was incomplete. The signature also looked wrong, but she could live with it. She felt that perhaps it was a work from Zampighi's younger days. She contacted the appraiser, Sly Himes, for the appraisal he generously offered at the auction. Six months later, after several phone, Himes sent Connie an appraisal on an [old, now obsolete] AAA-approved appraisal form. Meantime, Connie had taken the summer appraisal courses at NYU and noted that the appraisal lacked many required facts. Additionally, no CV was included, although Himes attached a copy of a local newspaper article featuring him as an appraiser. Connie questioned the appraisal since Himes had put a value of $60,000 on a painting for which she had only paid $7,500. He explained that “of course” the figure was much higher than the purchase price -- she got the painting "at a steal" and that insurance values are also inflated. He arrived at the $60,000 by doubling the high Hugh Byatt auction estimate and adding a slight inflationary factor.
Connie continued her research. On her next trip to New York, she brought the painting to Sotheby's and Christie's for their input. Each auction house indicated that it was a "lovely painting" in the manner of Zampighi, but not for them. Connie then contacted several Madison Avenue/57th Street galleries who sold similar 19th century genre paintings. No one seemed to be interested in her "$60,000" painting. However, one gallery told her that they thought the remembered seeing the painting in a sale at Skinner's or Sloan's in the late 1990's. Connie next contacted Skinner's and Sloan's. The painting had actually passed through both auction houses. It was in a 1998 sale at Sloan's and did not sell. In 2000 it appeared at a Skinner sale where she was told that it sold privately after the sale. In both catalogues, the auction houses had indicated that the paintings was "in the manner of Zampighi". The estimates were $1,000-1,500 (Sloan's) and $800-1,000 (Skinner). Connie has learned her lesson! Does she have any recourse? Who, if anyone, was in violation of USPAP in this case? Explain.
LONG CASE STUDY 2 Mr. Haney is the owner of a small, but respected antiques/collectible shop in New Market, Minnesota. New Market is the county seat for a large farming community in Southern Minnesota. Recently the area has become very popular with rich, young Minneapolitans who enjoy antiquing. Many old farm houses and estates have been bought by these "big city" yuppies as country and weekend homes. Haney is the only AAA appraiser in 150 miles. He has been a member of the AAA since 1965 when just starting out in the antiques business. Although his appraisal practice has never been a great source of revenue, it has led to a constant source of new merchandise. Haney follows the new AAA guidelines that he learned at the last AAA conference he attended in 1990. He always states that at the time of the appraisal he has no interest in the items appraised (although he knows that eventually they will come to him since he is the only "game" in town). In May 2000, Mr. Espender, one of the wealthy "yuppie" types that had moved into town was killed in a car accident, leaving a very pretty widow and three young children. Haney had known the family for the five years that they had lived in New Market, as he had sold them many of the antiques in their home. He was quite fond of the Espender family and his wife frequently babysat for the Espender children. Haney was retained to conduct the appraisal for the estate. He was told that the estate had to be liquidated quickly as the widow was left penniless. The attorney, Haney's first cousin, assured him that there were no tax consequences since there was a surviving spouse. The appraisal was done for capital gains purposes only. The attorney asked Haney if he wouldn't mind waiting to get paid for the appraisal until after some of the items were sold. He explained that the widow could barely cover the funeral expenses. Haney agreed -since he sold the family many of the items in the estate, he knew that the estate included many valuable and salable items. Haney had not realized the extent of the collecting the Espender family had done over the past few years. When he arrived onsite he discovered that the rambling farmhouse was filled with not only the country pieces that he had sold the family, but also some signed 19th century portraits and genre scenes, various American quilts and needlepoints, Chinese Export porcelain, silver, glass, furniture, and books. To his relief he was told that Mrs. Espender's jewelry was not part of the estate and he would not have to appraise it. Haney called his wife to help with the appraisal. They alternated rooms. After two 10 hour days they finished the onsite part of the appraisal. That weekend they went to the wedding of a friend's daughter. At the wedding they ran into an old acquaintance who is an antiques dealer in New York. This friend asked Haney if he ever sees old needlepoints for sale. Haney indicated that he is working on an appraisal of some at the moment. They will be priced in the $200-500 range. He said he could probably arrange a deal with the estate since he knew that they desperately needed money. He asked his friend to call him on Monday. Monday at the Chamber of Commerce meeting, Haney saw his cousin, the estate attorney. Haney asked the attorney when he could have access to the inventory. He had buyers for it immediately. The attorney indicated that he had to speak with the widow, but did not predict a problem. The
attorney suggested that Haney use photographs to begin to sell the goods if he could not immediately move them into his antiques shop. The attorney also suggested that Mrs. Haney could post items on ebay if Haney did not have the time. Meantime, Mrs. Haney was diligently typing the appraisal. About a week later she finished the report. During that time, Haney had returned to the Espender home to take photographs since he knew many of the pieces he could sell for the family quickly because he had buyers all over the county and he knew the estate needed the money quickly. Haney bought several items for his own collection in order to help out the widow. His friend from New York bought ten of the twelve needlepoints for $200 each. He sold several paintings and some candlesticks on ebay. Within two weeks, Haney had raised more than $40,000 for the estate and the widow was delighted. Haney continued to sell articles from the estate. Some he had in on consignment in his shop; others he kept at the widow's home until they were sold; some of the smaller items he posted on ebay for an easy sale. About eight months later, friends of the widow noticed that a portrait similar to a portrait they remembered at the Espender house was offered for sale at Susanin's in Chicago. This painting was reportedly by John Singleton Copley. The estimate was $100,000-125,000. They asked the widow if she knew anything about it. Mrs. Espender saw a photograph of the painting and realized that it was a painting that Haney had sold shortly after the death of her husband. She recalled that Haney had appraised the painting for $2,500 with the "off-the record" comment indicating that he thought the painting was probably worth much less, but did not want the widow to have to pay additional capital gains on a potential sale. Eventually she received $1,200 for the painting after Haney had taken his commission. She did not have to pay capital gains and she was pleased at the time. Mrs. Espender started to investigate other pieces that were sold. She found five of her needlepoints in a sale at Sotheby's in New York. One was sold for $8,000, others were in the $4-6000 range. She was paid $125 for each of them. She saw several of her quilts in a downtown Minneapolis folk art gallery with prices of $4-12,000. She was paid $100 per quilt by Haney. Needless to say, Mrs. Espender was livid. She called the Better Business Bureau and the AAA. She filed ethical complaints against Haney. To this day, Haney does not understand what he did wrong --- He was just trying to help the widow. Was Haney in violation of USPAP? Explain.
LONG CASE STUDY 3 Eve Nigh received a MA in Art History from Smith College in Northampton in 2000. After many months of looking for arts-related employment in the Western Massachusetts area, she found a job working for an antiques shop, called Tab Blue, which specialized in English and American country dining furniture in Great Barrington, Massachusetts. The shop's clientele was primarily weekenders and vacationers from Boston and New York. Frequently these customers ask for appraisals on their recent purchases. Eve seeing an opportunity, taught herself to do appraisals and started offering independent appraisals to those who inquired. Her appraisal practice became a very lucrative sideline business to her job in the antiques shop. Not only did she do appraisals for the Tab Blue, she was also hired by all of the galleries in town to do their clients' appraisals. The work was very easy since the dealers usually supplied her with descriptions and purchase prices of the items she appraised. She wrote the appraisals according to the generic format she copied from her parents' 1985 insurance appraisal and changed the descriptive facts. All was fine until in May 2003 when a Mrs. Ann Teak, a 2001 client whom Eve barely remembered, called to request a copy of the full appraisal to be sent to her insurance company. The client could not find her copy of the appraisal and stated that the insurance company requested it for a claim she was filing. Apparently, the client's son had a party while she was out of town and the table had several cigarette burns on the top. The client was filing an insurance claim for the restoration. Eve could not recall the specific table. She had disposed of her 2001 records at the end of 2002 when she moved. She was hoping that perhaps she could find the dealer who originally sold the client the table and she could reconstruct the appraisal. Eve explained the situation to all of her dealer friends in town, asking them to check their records for any sales to a Mrs. Teak from about 2001. Many of the dealers knew Mrs. Teak, but no one had a record of the sale. She went back to Mrs. Teak and told her that she could not help her because she was unable to find a record of the appraisal. Meantime, the insurance company had conducted an independent appraisal for the table. Their appraiser had indicated that the table was constructed of a 19th century maple base and a contemporary maple-stained pine top. The insurance company's appraiser felt that the table's total replacement value was $1,000. The cost to replace the top was $250 with no loss of value. The client was upset since she had recalled paying $6,500 for a “Federal” maple table. She went through her records and found a copy of the invoice for the table and Eve's appraisal. Mrs. Teak did pay $6,500 plus tax and shipping for the table in 2001. Eve had appraised the table for $9,500. Mrs. Teak would not accept the insurance company's offer. It was decided that she would go to litigation.
Eve's files, including her comparables were subpoenaed. Eve stated that she had disposed of her 2001 files at the end of 2002. The attorney, Justice Forell, was very nice and asked Eve to reconstruct an appraisal to the best of her ability. Mrs. Teak sent Eve a copy of the original sale's receipt so Eve could discuss the table with the dealer. The dealer, Tom Crook, had closed shop about six months ago and no record of a forwarding address existed. Eve's boss, a dealer in antique tables recalled that Crook frequently sold assembled tables to unknowing clients. No respected antiques dealer in Great Barrington wanted to associate with Crook. Eventually the word got around and his business ultimately suffered, hence his disappearance. Eve now remembered the appraisal. It was the only appraisal that she did for Crook. She remembered not liking to work with him. He insisted that she do the appraisal from a photograph and the information he supplied. She never actually saw the table. Crook had told Eve to put $9,500 on the table. At the time she thought that was too high, but if that's what the client had paid for it - it was a fair price. She did no further research as to comparables. Since the table was now in Boston, Eve suggested that the client get a second opinion from an appraiser in the Boston area. Eve offered to pay for the appraisal. Mrs. Teak got a second opinion which confirmed the insurance company's findings. Mrs. Teak's attorney, Forell, felt that Eve's appraisal would not hold up in court. Forell recommended that Mrs. Teak accept the insurance company's offer of $250 and take action against Eve. Mrs. Teak accepted the insurance company's offer and proceeded to sue Eve for the difference in the value between her appraisal and the second opinions, plus court costs, plus pain and suffering. The case was settled out of court. Was Eve in violation of USPAP? Explain.
APPRAISERS ASSOCIATION OF AMERICA, INC.
UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE, 2006
SHORT CASE STUDIES 1. One of your clients is "just interested in knowing" what a particular painting is worth.
The client would like you to write an abbreviated report. You suspect, however, that the client will attempt to sell the painting if the appraisal is high and will use your appraisal to justify the asking price. Under USPAP how should this be handled?
2. Your client has suffered a catastrophic loss in a fire and must submit an appraisal to
be reimbursed by the insurance carrier. After having contracted to do the job you arrive on the scene to discover that the client has hardly any documentation about the objects which have been lost, which is entirely different from the scenario presented to you on the phone. Under USPAP how should this be handled?
3. You have contracted to write a donation appraisal for works of art which have been donated to a museum. The museum staff is being very difficult and will not allow you to see the objects until after the appraisal must be filed with the client's income tax. Under USPAP how should you handle this situation?
4. You have been asked to appraise an artist's estate for estate tax purposes. After
completing a preliminary inventory you become convinced that a blockage discount should be applied. However, you have never written this type of appraisal before and not one of your colleagues has either. Under USPAP how should this be handled?
5. After researching a number of Renaissance paintings in a client's collection, you are
convinced that they have been stolen from a major museum. Do you have a fiduciary responsibility under USPAP? How should this situation be handled when writing your appraisal?
6. You have been told by a dealer, that an unpublished Impressionist painting included in an estate will be listed in the new edition of the artist's Catalogue Raisonné. You have contacted the expert who is writing the catalogue for confirmation and, after several follow-up phone calls, you still have not received a reply. Another dealer has now told you that the expert is very reclusive and does not return phone calls. The estate appraisal is due. According to USPAP how should this situation be handled?
7. You have been retained as an appraiser expert in an equitable distribution case. In completing your appraisal, written according to USPAP, you find that you cannot use the published definition of value listed in the Standards. How should this be handled?
8. After completing an estate appraisal, the executor who hired you has been so impressed by the quality of your USPAP appraisal that he now wants to retain your services to broker the collection. According to USPAP how should this be handled?
9. Nine months after the date of death, the estate appraisal is now due. However, you have not had time to complete it. The lawyer tells you not to worry and just submit an estimated value and complete the appraisal in due course. According to USPAP, how should this be handled?
10. You have been contacted by a judge’s assistant to submit a proposal for a large
divorce appraisal. After reviewing your proposal, a divorce attorney arranged an appointment for you to examine the collection. On the date of the appointment, you were met by the daughter of the divorcing couple. You completed your appraisal and were told to send the bill to an accountant. Who is your client? Explain.
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H-10
CONGRESS AND THE IRS SET THEIR SIGHTS ON “HIRED GUNS”
By Moira Sullivan Crabtree
SUMMARY
Prior to August 17, 2006, penalties for overstating the value of charitable deduction
property were aimed at taxpayers and tax preparers who either knew or should have known
that incorrect valuations were being used in tax returns. However, in 2006, Congress passed
legislation, the Pension Protection Act of 2006, P.L. No. 109-280, 120 Stat. 708 (2006), (“the Pension
Protection Act” or “the PPA”), that amended the Internal Revenue Code (“the Code”). Sec.
1219 of the PPA amended four sections of the Code (§§ 170, 6662, 6664 and 6696) and added a
penalty specifically targeted at appraisers who prepare appraisals that aid and abet taxpayers
in underpaying their taxes (I.R.C. §6695A). The PPA enacted new statutory definitions for
“qualified appraisal” and “qualified appraisers”. The PPA also reduced the threshold for
substantial and gross valuation misstatements for taxpayers who include on their tax returns any
valuation misstatements of property, both real and personal, that result in underpayments of
income tax and changed the threshold for valuation understatements of items reported on
estate and gift tax returns.
The Internal Revenue Service (“IRS” or “the Service”) and the Treasury Department
expect to issue new permanent regulations under § 170(f)(11) of the Code. Until those
regulations are issued, however, taxpayers and appraisers must use the Treasury Regulations
issued before August 17, 2006, as amended by the November 13, 2006 Internal Revenue Bulletin,
Notice 2006-46 to comply with the new Code provisions added by the PPA. A copy of this
Notice appears at the end of this section.
BACKGROUND
I.R.C. §170(a) generally permits charitable contributions deductions, subject to certain
limitations depending on the type of taxpayer, the nature of the property contributed, and the
type of donee organization. Section 170(f)(11) contains reporting and substantiation
requirements for allowable deductions for noncash charitable contributions. In particular, if a
taxpayer claims a deduction of more than $5,000 for donated property, he must obtain a
qualified appraisal and attach the appraisal summary to his tax return. If the contributed
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property is art valued at more than $20,000 or other property worth more than $500,000, he must
attach the qualified appraisal to the tax return.
Please Note: For appraisals prepared for returns filed on or before August 17, 2006,
existing Treasury Regulations provide a definition of the terms “qualified appraisal” and
“qualified appraiser” for purposes of §170(f)(11). For all tax returns filed after August 17, 2006,
the definitions in the Pension Protection Act apply.
The PPA was enacted on August 17, 2006. While the majority of the bill addressed
pension issues, tucked at the end under Title XII, are charitable giving incentives, provisions
aimed at reforming exempt organizations’ practices, increased penalties on taxpayers who
make valuation misstatements on their income, estate and gift tax returns and a new penalty on
appraisers who submit appraisals that result in substantial and gross valuation misstatements.
The penalty provisions address the situation in which an appraiser knew or should have known
that the taxpayer would use the appraisal in connection with his tax return. The PPA provisions
apply to all tax returns filed after August 17, 2006 and the appraisals attached to those tax
returns.
HOW CONGRESS TIGHTENED RESTRICTIONS ON APPRAISERS AND THEIR PRACTICES
QUALIFIED APPRAISALS
If a taxpayer donates tangible personal property worth more than $500, he must include
a description of that property with his tax return. Attaching IRS Form 8283 to the tax return
satisfies this requirement. A taxpayer must obtain a qualified appraisal for donated property
worth more than $5,000, and attach the summary of that appraisal to the tax return. If the
donated property is art valued at more than $20,000 or other property worth more than
$500,000, the taxpayer must attach the complete appraisal to the return.
Treasury Regulations issued before August 17, 2006 define a qualified appraisal. A
qualified appraisal complies with §170(f)(11) and Treas. Reg. §1.170A-13(c) if it:
(1) relates to an appraisal made within 60 days prior to the date of contribution
and not later than the due date (including extensions) of the return on which the
deduction is claimed;
(2) Is prepared, signed, and dated by a qualified appraiser;
(3) Includes:
(a) A description of the property appraised;
(b) The fair market value of the property on the date of contribution;
(c) The specific basis for the valuation;
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(d) A statement that the appraisal was prepared for income tax
purposes;
(e) The qualifications of the qualified appraiser; and
(f) The appraiser’s signature and taxpayer identification number; and
(4) Does not involve an appraisal fee that violates certain prescribed rules.
The post-August 17, 2006 transitional definition of “qualified appraisal” expands the definition of
“qualified appraisal” in the existing regulation by requiring that the appraisal be prepared by a
qualified appraiser according to generally accepted appraisal standards. Consequently, after
August 17, 2006 an appraisal will be treated as a qualified appraisal under § 170(f)(11)(E) if:
1) the appraisal complies with all the requirements of § 1.170A-13(c) of the
existing regulations [those listed above]; and
2) is prepared by a qualified appraiser in accordance with generally accepted
appraisal standards.
The Uniform Standards of Professional Appraisal Practice (“USPAP”), developed by the
Appraisal Standards Board of the Appraisal Foundation, is cited as an example of generally
accepted appraisal standards that will satisfy § 170(f)(11)(E)(i)(II).
QUALIFIED APPRAISER
Treas. Reg. §1.170A-13(c)(5)(i) defines a qualified appraiser as a person who:
1) Holds himself or herself out to the public as an appraiser or performs appraisals
on a regular basis;
2) Is qualified to make appraisals of the type of property being valued (as
determined by the appraiser's background, experience, education and
membership, if any, in professional appraisal associations);
3) Is independent; and
4) Understands that an intentionally false or fraudulent overstatement of the
value of the appraised property may subject the appraiser to civil penalties.
I.R.C. §170(f)(11)(E)(ii)(I) requires an appraiser have earned an appraisal designation
from a recognized professional appraiser organization, based on demonstrated competence
valuing the type of property in the appraisal. Furthermore, the appraiser must declare in the
4
appraisal that he is qualified to appraise this property because of his background, experience,
education, and membership in professional associations. See also § 1.170A-13(c)(5).
The transitional definition of a qualified appraiser in Notice 2006-46 is more stringent than
the definition in the existing Treasury Regulation; Notice 2006-46 must be followed for all
appraisals prepared for a tax return filed after August 17, 2006.
The minimum education requirements for an appraiser valuing personal property differ
for tax returns filed before and after February 16, 2007. Before February 16, 2007, an appraiser
meets minimum education and experience requirements to appraise the type of property being
valued if he satisfies the requirements of § 1.170A-13(c)(5) as listed above. For tax returns filed
thereafter, the appraiser must satisfy the new definition in §170. He must, with regard to the
property being valued (“the subject property”):
(1) have successfully completed college or professional-level coursework
relevant to the subject property;
(2) have at least two years’ experience in the trade or business of buying,
selling, or valuing property like the subject property; and
(3) fully describe in the appraisal his education and experience that
qualify him to value property like the subject property.
APPRAISER PENALTIES AND OVERSIGHT
There is well-established authority for the Secretary of the Treasury to impose penalties
on persons aiding and abetting the understatement of tax. Historically these provisions were
aimed at unscrupulous tax preparers.
A penalty can be imposed on a person who:
(1) aids, assists in or advises with respect to a tax return or other document;
(2) knows (or has reason to believe) that such document will be used in
connection with a material tax matter; and
(3) Knows that this would result in an understatement of tax of another person.
The penalty for submitting an unrealistic opinion is $250; and for willful and reckless
5
conduct, the penalty is $1,000. If the document relates to the tax return of a corporation, the
amount of the penalty is $10,000. These penalties remain in effect for tax preparers.
New Appraiser Penalty
The new section in the Code, § 6695A, “Substantial and Gross Valuation Misstatements
Attributable to Incorrect Appraisals,” imposes civil penalties on any appraiser who prepares an
appraisal used to support a tax position that results in a substantial or gross valuation
misstatement. Computing this new appraiser’s penalty is a two-step process:
1) take the greater of:
a. $l,000 or
b. 10% of the understatement of tax resulting from a substantial or gross
valuation misstatement.
2) Then take the lesser of:
a. the result in step 1 or
b. A maximum of 125 percent of the gross income derived from the appraisal.
For example, assume that the understatement in tax is $50,000 and that the appraiser earned
$20,000 for preparing the appraisal. Under step 1, the $5,000 (or 10% of the $50,000
understatement in tax) is greater than $1,000. Under step 2, $24,000 is 125% of the appraisal fee
($20,000 X 1.25 = $24,000). Because $5,000 is less than $24,000, the appraiser’s penalty is $5,000.
The penalty will not apply if the appraiser establishes that it was "more likely than not" that the
appraisal value was correct.
New Appraiser’s Declaration on Form 8283
When a person donates property and claims a deduction of more than
$5,000 per item or group of items, art valued at $20,000 or more, and any property for which a
$500,000 deduction is claimed, he must obtain a written appraisal and fill out Section B of the
Form 8283. Part I contains information on the donated property itself:
• description of type of donated property (art worth less than $20,000, art worth more than
$20,000, collectibles, and other types of property)
• description of the donated property;
• brief summary of the property’s overall condition when donated;
• appraisal fair market value;
• date of the contribution;
6
• date donor acquired the property;
• how donor acquired the property;
• donor’s cost or adjusted basis;
• amount received if a bargain sale
• amount claimed as a deduction.
In Part II, the donor is required to sign a declaration that identifies all donated items that
have an appraised value of not more than $500 per item.
Part III contains the appraiser’s binding declaration that reflects all changes in the PPA:
“I declare that I am not the donor, the donee, a party to the transaction in which the
donor acquired the property, employed by, or related to any of the foregoing persons,
or married to any person who is related to any of the foregoing persons. And, if regularly
used by the donor, donee, or party to the transaction, I performed the majority of my
appraisals during my tax year for other persons.
“Also, I declare that I hold myself out to the public as an appraiser or perform appraisals
on a regular basis, and that because of my qualifications as described in the appraisal, I
am qualified to make appraisals of the type of property being valued. I certify that the
appraisal fees were not based on a percentage of the appraisal property value.
Furthermore, I understand that a false and fraudulent overstatement of the property as
described in the qualified appraisal or this Form 8283 may subject me to the penalty
under section 6701(a) (aiding and abetting the understatement of tax liability). In
addition, I understand that a substantial or gross misstatement resulting from the
appraisal of the value of the property that I know, or reasonably should know, would be
used in connection with a return or claim for refund, may subject me to other penalty
under section 6695A. I affirm that I have not been barred from presenting evidence or
testimony by the Office of Professional Responsibility.”
Part IV is the acknowledgment that the donee must complete.
When a taxpayer claims a deduction of more than $5,000 for donated property, he must
attach the summary of the qualified appraisal to his tax return. If the contributed property is art
valued at more than $20,000 or other property worth more than $500,000, he must attach the
complete qualified appraisal to the tax return.
7
Disciplinary proceedings for taxpayer’s representatives:
The Secretary is also authorized to regulate the practice of any taxpayer representatives
(e.g. accountants and attorneys) before the Department of the Treasury ("Department”).
After notice and hearing, the Secretary is authorized to suspend or disbar from practice before
the Department or the Internal Revenue Service ("IRS") any representative who:
1) is incompetent or disreputable;
2) violates the rules regulating practice before the Department or the IRS; or
3) willfully and knowingly (with intent to defraud) misleads or threatens the person
being represented.
If any individual has had a civil penalty assessed against him for aiding and abetting the
understatement of tax, the Secretary can also prevent him from appearing before the
Department or the IRS to offer opinion evidence on the value of any property.
Disciplinary proceedings against appraisers: Section 1219 of the PPA extends these sanctions to
appraisers after notice and a hearing but before a civil penalty is assessed against the
appraiser. Disciplinary action may include:
1) suspending or barring an appraiser from:
a. preparing or presenting appraisals on the value of any property to the
Department or the IRS;
b. appearing before the Department or the IRS to offer opinion evidence on the
value of any property; and
2) Providing that the appraisals of any appraiser who has been disciplined have no
probative effect in any administrative proceeding before the Department or the
IRS.
TAXPAYER PENALTIES FOR USING AN IMPROPER APPRAISAL
Income tax returns: Accuracy-related penalties
Accuracy-related penalties are imposed on any taxpayer who underpays his income taxes
because of either:
8
1) Substantial valuation misstatement; or
2) Gross valuation misstatement.
For an accuracy-related penalty to be imposed, the understatement in income tax must
be at least $5,000 for an individual or $10,000 for a corporation.
A substantial valuation misstatement is any value that is at least 150% or more of the correct
value. I.R.C. §6662(e)(1)(A). The penalty for a substantial valuation misstatement is 20% of the
underpayment of tax. Assuming that the reported value is at least 150% or more than the correct
value, the 20% penalty is applied thusly:
Correct tax liability as determined by the IRS
- Tax liability originally reported by the taxpayer
= Underpayment of tax X 20% = substantial misstatement penalty
Or, $350,000 correct tax liability
- 200,000 tax liability reported
$ 150,000 understated tax liability
X 20%
$ 30,000 substantial misstatement penalty
The taxpayer’s deficiency is now $180,000 ($150,000 understated liability plus $30,000 substantial
misstatement penalty).
A gross valuation misstatement penalty is applied if the misstatement is at least 200% or more
of the correct value. The penalty for a gross valuation misstatement is 40% of the underpayment of
tax. Assuming that the claimed value is at least 200% or more of the correct value, the 40% penalty
is applied exactly like the 20% penalty:
Correct tax liability as determined by the IRS
- Tax liability originally reported by the taxpayer
= Understated tax liability X 40% = gross misstatement penalty
Or,
$450,000 correct tax liability
- 200,000 tax liability reported
$ 250,000 understated tax liability
X 40%
$ 100,000 gross misstatement penalty
The taxpayer’s deficiency is now $350,000 ($250,000 understated tax liability plus $100,000
substantial misstatement penalty).
Warning for the unwary: Whether the penalty is 20% for the substantial valuation
misstatement or 40% for the gross valuation misstatement, interest is compounded daily on both the
9
deficiency and penalty and is charged from the due date of the return. In some cases, by the time
the taxpayer is assessed, his final bill could be as high as three times the original liability.
Estate and gift tax returns: Accuracy-related penalties
Accuracy-related penalties are also imposed on estate and gift tax returns that contain
either substantial or gross valuation understatements. If the value of any property claimed on the
return is determined to be no greater than 65% of the correct value, there is a substantial estate or
gift tax understatement. A gross understatement on a gift or estate tax return is one that is no
greater than 40% of the correct value. As with the income tax returns, for an accuracy-related
penalty to be imposed, the understatement in tax must be at least $5,000 for an individual or $10,000
for a corporation. Similarly, the penalty for a substantial valuation misstatement is 20% of the
understatement in tax and for a gross valuation misstatement, the penalty is 40%.
Exceptions to applications of the accuracy-related penalties
Under prior law, no accuracy-related penalty could be imposed if there was a reasonable
cause for an underpayment and the taxpayer acted in good faith. Under present law, there is no
longer any “reasonable cause” exception to the valuation understatement of charitable
contribution property. Now, the only circumstance in which no penalty is imposed on the
substantial understatement attributable to the value of any charitable contribution property is if:
1) the claimed value is based on a qualified appraisal made by a qualified appraiser; and
2) the taxpayer made a good faith investigation of the property’s value.
CONCLUSION
These provisions have a dramatic impact on appraisers and their professional practices.
Not only will the appraiser and his appraisal come under increased IRS scrutiny, any appraiser
who acts as a “hired gun” (giving the taxpayer whatever value he requests) risks losing the
ability to practice before the IRS for 3 years and paying a penalty that can be as much as
125% of the appraiser’s income earned preparing the appraisal.
In addition, these tightened restrictions on taxpayers and the appraisals used to support
the claimed tax deductions can also expose an appraiser to a lawsuit by the taxpayer who can
then claim “I relied on your appraisal and now the IRS has disallowed the value of the items you
appraised.” So, not only can the appraiser lose the income earned (+ an additional 25%), the
taxpayer could possibly sue to force the appraiser to pay his client’s additional tax, the penalties
10
and interest on the taxpayer’s deficiency (and perhaps the attorneys’ fees and court costs).
These potential consequences hardly make it worthwhile to be a “hired gun.”
Part III - Administrative, Procedural, and Miscellaneous Guidance Regarding Appraisal Requirements for Noncash Charitable Contributions Notice 2006-96 SECTION 1. PURPOSE
This notice provides transitional guidance relating to the new definitions of
“qualified appraisal” and “qualified appraiser” in § 170(f)(11) of the Internal Revenue
Code, and new § 6695A of the Code regarding substantial or gross valuation
misstatements, as added by § 1219 of the Pension Protection Act of 2006, Pub. L. No.
109-280, 120 Stat. 780 (2006) (the “PPA”).
The Service and the Treasury Department expect to issue regulations under
§ 170(f)(11). Until those regulations are effective, taxpayers may rely on this notice to
comply with the new provisions added by § 1219 of the PPA.
SECTION 2. BACKGROUND
A deduction for charitable contributions is generally permitted under § 170(a),
subject to certain limitations depending on the type of taxpayer, the nature of the
property contributed, and the type of donee organization. Section 170(f)(11), as added
by § 883 of the American Jobs Creation Act of 2004, Pub. L. No. 108-357, 118 Stat.
1418 (2004), contains reporting and substantiation requirements relating to the
allowance of deductions for noncash charitable contributions. In particular, under
§ 170(f)(11)(C), taxpayers are required to obtain a qualified appraisal for donated
2
property for which a deduction of more than $5,000 is claimed. Under § 170(f)(11)(D),
in certain cases the qualified appraisal must be attached to the tax return. For
appraisals prepared with respect to returns filed on or before August 17, 2006, existing
Treasury Regulations provide a definition of the terms “qualified appraisal” and “qualified
appraiser” for purposes of § 170(f)(11).
Section 1219 of the PPA amends § 170(f)(11)(E) and provides statutory
definitions of a qualified appraisal and qualified appraiser for appraisals prepared with
respect to returns filed after August 17, 2006.
Section 170(f)(11)(E)(i) provides that the term “qualified appraisal” means an
appraisal that is (1) treated as a qualified appraisal under regulations or other guidance
prescribed by the Secretary, and (2) conducted by a qualified appraiser in accordance
with generally accepted appraisal standards and any regulations or other guidance
prescribed by the Secretary.
Section 170(f)(11)(E)(ii) provides that the term “qualified appraiser” means an
individual who (1) has earned an appraisal designation from a recognized professional
appraiser organization or has otherwise met minimum education and experience
requirements set forth in regulations prescribed by the Secretary, (2) regularly performs
appraisals for which the individual receives compensation, and (3) meets such other
requirements as may be prescribed by the Secretary in regulations or other guidance.
Section 170(f)(11)(E)(iii) further provides that an individual will not be treated as a
qualified appraiser unless that individual (1) demonstrates verifiable education and
experience in valuing the type of property subject to the appraisal, and (2) has not been
3
prohibited from practicing before the Internal Revenue Service by the Secretary under
§ 330(c) of Title 31 of the United States Code at any time during the 3-year period
ending on the date of the appraisal.
Section 1219 of the PPA also adds a new penalty provision. If the claimed value
of property based on an appraisal results in a substantial or gross valuation
misstatement under § 6662, a penalty is imposed by new § 6695A on any person who
prepared the appraisal and who knew, or reasonably should have known, the appraisal
would be used in connection with a return or claim for refund.
SECTION 3. TRANSITIONAL GUIDANCE
.01 In general
The Service and the Treasury Department expect to issue regulations under
§ 170(f)(11), as amended by the PPA. The terms in section 3 of this notice apply to
contributions of property (other than readily valued property within the meaning of
§ 170(f)(11)(A)(ii)(I)) by individuals, partnerships, or corporations for which a deduction
of more than $5,000 is claimed on returns filed after August 17, 2006, and before the
effective date of the regulations that the Service and the Treasury Department expect to
issue. Until regulations are effective under § 170(f)(11), as amended by the PPA, an
appraisal that meets the requirements of this notice shall be treated as a qualified
appraisal for purposes of § 170(f)(11). The determination of whether an appraiser is
qualified under section 3.03 of this notice must be based on the appraiser’s
qualifications as of the date the appraisal is made.
.02 Transitional terms-qualified appraisal
4
(1) Qualified appraisal. An appraisal will be treated as a qualified
appraisal within the meaning of § 170(f)(11)(E) if the appraisal complies
with all of the requirements of § 1.170A-13(c) of the existing regulations
(except to the extent the regulations are inconsistent with § 170(f)(11)),
and is conducted by a qualified appraiser in accordance with generally
accepted appraisal standards. See sections 3.02(2) and 3.03 of this
notice.
(2) Generally accepted appraisal standards. An appraisal will be
treated as having been conducted in accordance with generally accepted
appraisal standards within the meaning of § 170(f)(11)(E)(i)(II) if, for
example, the appraisal is consistent with the substance and principles of
the Uniform Standards of Professional Appraisal Practice (“USPAP”), as
developed by the Appraisal Standards Board of the Appraisal Foundation.
Additional information is available at http://www.appraisalfoundation.org.
.03 Transitional terms – qualified appraiser
(1) Appraisal designation. An appraiser will be treated as having
earned an appraisal designation from a recognized professional appraiser
organization within the meaning of § 170(f)(11)(E)(ii)(I) if the appraisal
designation is awarded on the basis of demonstrated competency in
valuing the type of property for which the appraisal is performed.
(2) Education and experience in valuing the type of property. An
appraiser will be treated as having demonstrated verifiable education and
5
experience in valuing the type of property subject to the appraisal within
the meaning of § 170(f)(11)(E)(iii)(I) if the appraiser makes a declaration in
the appraisal that, because of the appraiser’s background, experience,
education, and membership in professional associations, the appraiser is
qualified to make appraisals of the type of property being valued. See
also § 1.170A-13(c)(5).
(3) Minimum education and experience. An appraiser will be
treated as having met minimum education and experience requirements
within the meaning of § 170(f)(11)(E)(ii)(I) if –
(a) For real property
(i) For returns filed on or before October 19, 2006,
the appraiser is qualified as a “qualified appraiser” within the
meaning of § 1.170A-13(c)(5) to make appraisals of the type
of property being valued.
(ii) For returns filed after October 19, 2006, the
appraiser is licensed or certified for the type of property
being appraised in the state in which the appraised real
property is located.
(b) For property other than real property –
(i) For returns filed on or before February 16, 2007,
the appraiser is qualified as a “qualified appraiser” within the
meaning of § 1.170A-13(c)(5) to make appraisals of the type
6
of property being valued.
(ii) For returns filed after February 16, 2007, the
appraiser has (A) successfully completed college or
professional-level coursework that is relevant to the property
being valued, (B) obtained at least two years of experience
in the trade or business of buying, selling, or valuing the type
of property being valued, and (C) fully described in the
appraisal the appraiser’s education and experience that
qualify the appraiser to value the type of property being
valued.
.04 Applicability of reporting and substantiation regulations
(1) In general
The requirements of § 1.170A-13(c) of the existing regulations concerning
qualified appraisals and qualified appraisers continue to apply to all taxpayers, including
those to whom the transitional guidance in this section may apply, except to the extent
the regulations are inconsistent with the provisions of § 170(f)(11). In particular, all
taxpayers are required to comply with §§ 1.170A-13(c)(3), (c)(5), (c)(6) and (c)(7).
(2) Revision to appraiser declaration
For returns filed after February 16, 2007, the declaration required under
§ 1.170A-13(c)(5)(i) must include an additional statement that the appraiser
understands that a substantial or gross valuation misstatement resulting from an
appraisal of the value of property that the appraiser knows, or reasonably should have
7
known, would be used in connection with a return or claim for refund, may subject the
appraiser to a civil penalty under § 6695A. See also § 1.170A-13(c)(3)(iii).
SECTION 4. REQUEST FOR COMMENTS
The Service and the Treasury Department invite comments containing
suggestions for future guidance under § 170(f)(11), including regulations. In
particular, comments are requested concerning the definition of the following
terms: (1) "generally accepted appraisal standards” in § 170(f)(11)(E)(i)(II); (2)
"appraisal designation from a recognized professional appraisal organization” in
§ 170(f)(11)(E)(ii)(I); (3) "minimum education and experience requirements” in
§ 170(f)(11)(E)(ii)(I); and (4) “verifiable education and experience in valuing the
type of property subject to the appraisal” in § 170(f)(11)(E)(iii)(I). Comments also
are requested on the potential impact any guidance under § 170(f)(11) may have
on small businesses. Comments should refer to Notice 2006-96 and be
submitted by January 17, 2007, to:
Internal Revenue Service P.O. Box 7604 Ben Franklin Station Washington, D.C. 20044 Attn: CC:PA:LPD:PR Room 5203 Alternatively, comments may be submitted electronically via e-mail to the following
address: [email protected]. All comments will be available for
public inspection and copying.
SECTION 5. PAPERWORK REDUCTION ACT
The collections of information in this notice have been reviewed and approved by
8
the Office of Management and Budget (OMB) in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under control number 1545-1953.
An agency may not conduct or sponsor, and a person is not required to respond
to, a collection of information unless the collection of information displays a valid OMB
control number.
The collections of information in this notice are in section 3 of this notice. The
collections of information are required from donors to satisfy the substantiation
requirements of § 170(f)(11). The collections of information are required from donors to
obtain a benefit. The likely respondents are individuals, partnerships, and corporations.
The estimated total annual reporting burden is 161,571 hours.
The estimated annual burden per respondent varies from 5 minutes to 5 hours,
with an estimated average of approximately 3.5 hours. The estimated number of
respondents is 46,285.
The estimated annual frequency of responses (used for reporting requirements
only) is once per year.
Books or records relating to a collection of information must be retained as long
as their contents may become material in the administration of any internal revenue law.
Generally, tax returns and return information are confidential, as required by § 6103.
SECTION 6. DRAFTING INFORMATION
The principal author of this notice is Susan J. Kassell of the Office of Associate
Chief Counsel (Income Tax & Accounting). For further information regarding this notice
contact Susan J. Kassell at (202) 622-5020 (not a toll-free call).
SAMPLE REPORT -FOR DONATION
USPAP DOES NOT
DICTATE FORM,FORMAT OR STYLE
1
Appraiser’s nameAddressPhone1
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM2 3
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 1 OF 344 5 6 7 8
APPRAISERS’ CERTIFICATION9
COMPANY NAME is a registered firm of appraisers qualified to appraise personal property
including fine art and antiques. The appraiser signed below, APPRAISER NAME, AAA,
holds herself out to the public as a professional appraiser of Fine Art, including
Contemporary Art as included in this appraisal document. APPRAISER NAME is not now10
nor has ever been disqualified by the IRS from preparing IRS appraisals.11
Although the appraiser has appraised similar objects for other clients, to the
appraiser’s knowledge, this is her first association with these particular objects.12
The appraiser did not examine the artwork, however has carefully examined information
and images of the articles listed herein. Valuation is based solely on personal13
research and analysis of comparative market data as performed by the appraisers and14
office assistants at COMPANY NAME. No other party was significant in the valuation of
the appraised property. Although the statements of fact contained in this report are15
true and correct , the reported analyses, opinions, and conclusions are limited only16
by the reported assumptions and limiting conditions . The values expressed herein are17
based on the appraisers’ best judgement and opinion and are not a representation or
warranty that the items will realize that value if offered for sale in an appropriate
market within the United States .18
The appraiser, without any past, present, or contemplated future interest or bias19
which might tend to prevent a fair and objective appraisal declares the current fair
market value of each item.20
Compensation for this appraisal is not contingent upon the arrived valuation . Fee21
is based on a discounted (15% professional courtesy) hourly rate plus expenses. No22
person, group, or organization was given a fee in connection with the procurement of
this appraisal assignment. Further, compensation is not contingent upon the reporting23
of a predetermined value or direction in value that favors the cause of the
client/donor, the amount of the value estimate, the attainment of a stipulated result,
or the occurrence of a subsequent event.24
The objective of this report is to provide an unbiased fair market value guideline and
a basis for charitable donation evaluation . The appraiser understands that this25
appraisal will be used in connection with a tax return or claim for refund, and a
substantial or gross valuation misstatement resulting from this appraisal may subject
me to a civil penalty under Section 6695A of the Internal Revenue Code.26
According to the client/donor named at the top of every page of this report, the
articles listed herein are to be given free and clear, without restrictions, to the
permanent collection of the Famous University Art Museum, Famous City, Famous State (an
IRS qualified non-profit charitable organization) (See Exhibit 1).27
Digital images are included as references in the event of an audit by the Internal
Revenue Service. The client/donor is responsible for obtaining the appropriate
photographs as requested by the Internal Revenue Service. The Famous University Art28
Museum is responsible for obtaining and filing the appropriate IRS form 8283, if and
when applicable.
(Continued on Page 2)
SAMPLE REPORT -FOR DONATION
USPAP DOES NOT
DICTATE FORM,FORMAT OR STYLE
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 2 OF 34
2
APPRAISERS’ CERTIFICATION(Continued from Page 1)
The appraiser did not examine the donated articles due to their location . However,29
the appraiser viewed three (3) colored digital images of the work and discussed the
current condition of the articles with Mr. Art, a trained art professional and Mr.
Master, the Assistant Curator of Western Art at the Famous University Art Museum
(Exhibit 2). As such, the appraiser does not feel that the reported values of the work
in this report has been compromised in any manner due to the absence of the personal
examination.
Appraiser valued two (2) articles of Fine Art as designated by client/donor for this
recipient in 2008.
This report has been written according to the rules of the 2008 USPAP (Uniform Standard
of Professional Appraisal Practice) . This appraisal is considered to be a30
“retrospective” self-contained appraisal report as the appraiser conducted her31 32
research during the Fall of 2008, 9-10 months after the donation had been accepted.
Although the appraiser conducted her research in Fall 2008, the effective valuation
date is the “retrospective” January 2008 date.
Although these certification pages include salient information regarding the
methodology of the report, additional information regarding the scope of work,
assignment conditions, and disclaimers are important to understand the entire appraisal
process. As such, the entire report is required to fully understand the assignment and
this certification page encompasses the entire report and is not valid without reading
and understanding the entire report.33
Total pages of report: ##34
Total number of articles appraised: #
Total number of photographs and/or digital images: #35
Total number of exhibits: #
Examination date: DID NOT EXAMINE36
Research dates: September 20 - October 10, 200837
Date of donation: January 20, 200838
Effective valuation date: January 20, 200839
Issue date of the report: October 12, 200840
APPRAISER NAME, AAA41
Appraisers Association of America,
Certified Member42
ID# -----------43
SAMPLE REPORT -FOR DONATION
USPAP DOES NOT
DICTATE FORM,FORMAT OR STYLE
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 3 OF 34
3
APPRAISERS’ CV 44
SAMPLE REPORT -FOR DONATION
USPAP DOES NOT
DICTATE FORM,FORMAT OR STYLE
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 4 OF 34
4
TABLE OF CONTENTS45
Appraisers' Certification Pages 1 - 2
Appraiser’s Qualifications Page 3
APPRAISER NAME, AAA Page 3
Table of Contents Page 4
Scope of Work: Appraisal Method and Definition of Value Pages 5 - 9
Explanation of Authorship and Attribution Page #
Disclaimers, Limiting Conditions & Assumptions Pages ## - ##
Market Analysis Page ##
Total Value Page ##
Donated Item
Article 1 - XXXXXXXX Page ##
Famous Artist Pages ## - ##
Comparable Sales and Offerings for XXXXXXXX- Auction Sales Pages ## - ##
Valuation for XXXXXXXX Page ##
Donated Item
Article 2 - MMMMM Pages ## - ##
Comparable Sales and Offerings for MMMMM
Auction Sales and Retail Sales Page ##
Valuation for MMMMM Page ##
Sources Page ##
References Books and Price Guides Page ##
Galleries, Experts, Auctions, Internet Sites Page ##
Digital Images Follows report
Exhibit 1 - Deed of Gift from the Famous University Art Museum
signed January 20, 2008 Follows report
Exhibit 2 - Mr. Master, the Assistant Curator of Western Art at the Famous
University Art Museum email dated October 1, 2008 Follows report
Exhibit 3 - Mission Statement of the Famous University Art Museum as indicated
on their website: http://famousmuseum.edu/about/ Follows report
Exhibit 4 - Photocopy of Bid It Ups’ auction catalogue:
Modern and Contemporary Works of Art, Bid it Up Auction,
Anytown, Any State; Sale - January 12, 2003 Lot 121 Follows report
SAMPLE REPORT -FOR DONATION
USPAP DOES NOT
DICTATE FORM,FORMAT OR STYLE
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 5 OF 34
http://artmuseum.Famous.edu/about/1
5
SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE46
PROBLEM TO SOLVE : The appraiser was asked to appraise one (1) painting, XXXXXXXX, by47
Famous Artist and a suite of three (3) lithographs, MMMMM, by various artists which
have been donated to the Famous University Art Museum, Famous City, Famous State. The
client/donor requires this appraisal as they will be taking a deduction from their
2008 Federal Income Taxes based on the appraised value of the contribution. This
appraisal will be sent to the client/donor. The client/donor will be advised to send
a copy of this appraisal to the Famous University Art Museum and to keep a copy of the
report with their taxes for submission upon request.
CATEGORY OF ITEM S EXAM INED : Contemporary art.48
CLIENT : Owners/donors of the artwork, Mr. and Mrs. Sam Pull.49
OW NERS OF THE ARTW ORK : Mr. and Mrs. Sam Pull.50
USE OF APPRAISAL : Charitable Contribution / Taxation.51
USER(S) OF APPRAISAL : This appraisal can be used and relied upon by the clients/donors,52
their designated attorney and/or accountant, the Famous University Art Museum, and the
Internal Revenue Service. Any other user is considered an unintended user.
APPRAISER’S PAST EXPOSURE TO APPR A ISED OBJECTS: To the appraiser’s knowledge and
recollection, this is her first association with these particular objects.
RELATED USE : The primary mission of the Famous University Art Museum is to53
effectively support and enhance the university’s goals of teaching, research, and
service. The donation of XXXXXXXX by ------ will enhance the museum’s collection of
Abstract Expressionists work and is available for Art Historical studies. The
donation of the MMMMM portfolio is an economy-inspired work which will speak to the
Political Science, Economics, History, as well as the Art History Department. The
museum also has a clear commitment to serve the local community, the region, and
beyond. The museum encourages the public to benefit from its art collections and
frequent exhibitions and to provide support for its principal activities through
specific programs and outreach initiatives. Scholarly exhibitions, publications,
symposia, and an active loan program extend the museum’s reach to a national and
international audience, assuring its continuing vitality and its active participation
in the university’s primary commitment to advance and impart knowledge. (Exhibit 3)1
.
EFFECTIVE / VALUATION DATE OF APPRAISAL : The value expressed in this appraisal is effective54
on the date listed on the Deed of Gift from the Famous University Art Museum, Famous
City, Famous State, signed January 20, 2008 (Exhibit 1).
OW NERSHIP INTEREST / ART LOSS REGISTER : The question of title was not an issue. As such,55
the appraiser did not perform Art Loss Register Inquiries. Client provided the
appraiser with detailed invoices for both works.
(Continued on Page 6)
SAMPLE REPORT -FOR DONATION
USPAP DOES NOT
DICTATE FORM,FORMAT OR STYLE
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 6 OF 34
6
SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 5)
AUTHENTICITY : Although the appraiser is not an authenticator, the appraiser had no56
reason to doubt the authenticity of the works. Client provided the appraiser with
detailed invoices for both works, each indicating correct catalogue raisonné
information.
GENERAL ASSIGNM ENT CONDITIONS : The appraiser did not examine the appraised works. This57
appraisal is based on information supplied to the appraiser by the client/donor, the
Famous University Art Museum, and through personal research.
The appraiser was given adequate time to research the items. Appraiser was given
minimal documentation for these articles.
SPECIFIC ASSIGNM ENT CONDITIONS (ASSUM PTIONS) : The appraiser assumes the mediums to be as58
reported. A scientific analysis of the chemical compounds of the supports or pigments
was not conducted as it was not an issue relating to valuation.
SPECIFIC ASSIGNM ENT CONDITIONS (EXTRAORDINARY ASSUM PTIONS) : The appraiser did not examine the59
donated articles due to their location. However, the appraiser viewed digital
photographs of the works as well as discussed the condition of the work with Art
Proff, a trained art professional and Vincent Van Went, the Assistant Curator of
Western Art at the Famous University Art Museum (Exhibit 2).
Appraiser was given minimal documentation for these articles.
The appraiser assumes information provided by the client/donor to be correct.
The appraiser assumes the subject works will be the work donated to the museum.
The appraiser assumes authorship to be authentic .60
The appraiser assumes these works were previously traded in an appropriate market
without any unusual market stimuli affecting its sale or transaction .61
The appraiser assumes the clients/donors retained full title to the works immediately
prior to the gift.62
SPECIFIC ASSIGNM ENT CONDITIONS (LIM ITING CONDITIONS) : This report is limited to the63
information provided by the clients/donors (This is also considered an extraordinary
assumption).
This report is limited by the examination from a photograph (This is also considered
an extraordinary assumption).
(Continued on Page 7)
SAMPLE REPORT -FOR DONATION
USPAP DOES NOT
DICTATE FORM,FORMAT OR STYLE
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 7 OF 34
7
SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 6)
The appraiser is not a conservator as such did not prepare a condition report. This
appraisal is limited by the appraiser’s visual inspection of the photographs and the
input from the client and the Famous University Art Museum (Exhibit 2). No other
condition report was supplied.64
SPECIFIC ASSIGNM ENT CONDITIONS (HYPOTHETICAL CONDITIONS) : This report is based on the65
hypothetical existence of the artwork and the validity of the condition and facts
presented by the clients/donors and the Museum.
EXAM INATION AND M ETHOD OF EXAM INATION : The appraiser examined all available66
documentation relating to the work. She did NOT personally examine the artwork.
The appraiser was able to ascertain medium, style, and quality of work from the
photograph, supporting documentation, and discussions with client/donor’s agent. All
measurements were provided by the museum or standard reference material (as
indicated).
The appraiser assigned a general condition report to the object based on the
examination of the photographs and the documentation (Exhibit 2). “Condition” refers
to what is considered generally acceptable, with ordinary wear and tear for its type,
unless otherwise noted. Condition comments are limited to variations of good, fair,
and poor.67
PHOTOGRAPHY/DIGITAL IM AGERY : Three (3) digital color images of the works were supplied68
by the Museum. The client supplied the appraiser with a color photo-copy of the Bid
it Up auction catalogue where the painting was purchased. To the appraiser’s
knowledge, these photographs/photocopies/digital images have not been altered or
modified. The appraiser is not responsible for any alterations or modification, if
any exist.
The client is responsible for obtaining the regulation size photographs as required
by the IRS.
M ETHOD OF RESEARCH : Research was conducted in the offices of COMPANY NAME. The69
office is equipped with an extensive library of over 10,000 research books and auction
catalogues. Additional research was conducted on the Internet using standard search
engines as well as pricing data bases to which COMPANY NAME subscribes (including
ArtNet, ArtFact, ArtPrice, AskArt, ArtInfo, and Gordonsart). Appropriate galleries
and auction houses were contacted for information when necessary. No outside library
or museum research was conducted for this specific appraisal. Specific sources and
Internet sites are listed at the end of the report.
(Continued on Page 8)
SAMPLE REPORT -FOR DONATION
USPAP DOES NOT
DICTATE FORM,FORMAT OR STYLE
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 8 OF 34
2
The Gramm-Leach-Bliley Act, passed in 1999 and fully effective in July, 2001,
addressed overall financial industry reforms as well as emerging consumer privacy
and security issues. Officially called the “Financial Modernization Act of
1999”, it affects the technology and information system policies used by anyone
engaged in providing financial services either directly or indirectly to
consumers. Appraisers are specifically named as institutions required to follow
the stipulations of the law.
8
SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 7)
The clients/donors provided the appraiser with minimal primary information regarding
the artwork.
The appraiser was given adequate time to research the items.
TYPE OF APPRAISAL : This report is considered to be a “retrospective” self-contained70
appraisal report according to the rules of the 2008 USPAP (Uniform Standard of
Professional Appraisal Practice). Specific comparables not included in this report
are held in the clients’/donors’ files at COMPANY NAME. Specific comparable retail
sales history is confidential according to the Gramm, Leach, Bliley Act and cannot2
be disclosed without the owner’s permission. However, the appraiser has noted general
conversations in the client’s file in the offices of COMPANY NAME. The client file
is available for the clients, the clients’ representatives, and/or the IRS (with the
clients’ permission) to examine upon request. This information will be kept by
COMPANY NAME for a minimal period of five (5) years after the date of issue or two (2)
years after final disposition of any judicial proceedings involving the appraiser,
whichever period expires last.
APPROACH TO VALUE : The appraiser named on the cover page of this document employed71
the "market comparison" approach to arrive at the appraised "fair market value". The
"income" approach and the "cost" approach are not applicable to this particular
appraisal.
M ARKET EXAM INED : The "market comparison" approach analyzes recent sales of comparable72
articles at appropriate major international and regional fine art auctions, private
and public sales, shows and exhibitions, as well as prevailing prices at retail shops
and galleries where the article may normally be traded. For this particular
appraisal, the appraiser examined the American gallery and auction markets.
Adjustments are then made for each article which consider age, condition, rarity,
artistic merit, technical workmanship, current trends and availability of an article
as compared to such recent sales.
(Continued on Page 9)
SAMPLE REPORT -FOR DONATION
USPAP DOES NOT
DICTATE FORM,FORMAT OR STYLE
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 9 OF 34
9
SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 8)
TYPE OF VALUE USED : Fair Market Value.73
DEFINITION OF VALUE : Appraised “fair market value” as defined by IRS Section 1.170 and74
20.2031 (b) is "the price at which the property would change hands between a willing
buyer and a willing seller, neither being under any compulsion to buy or to sell and
both having reasonable knowledge of relevant facts." (According to Technical Advisory
Memorandum 9235005 (May 27, 1992), fair market value should include the buyer's
premium.) 20.2031 (b) continues "the fair market value of an item of property
includible in the decedents's gross estate is not to be determined by a forced sale
price. Nor is the fair market value of an item of property to be determined by the
sale price of that item in a market other than that in which such item is commonly
sold to the public, taking into account the location of the item wherever appropriate.
Thus, in the case of an item of property includible in the decedent's gross estate,
which is generally obtained by the public in the retail market, the fair market value
of such an item of property is the price at which the item or a comparable item would
be sold at retail." (Treasury Regulation Section 1.170A-13©)(3)(1988)
SOURCE FOR VALUE DEFINITION : IRS Section 1.170 and 20.2031 (b) and Treasury Regulation75
Section 1.170A-13©)(3)(1988)
USPAP COM PLIANCY : The report was written by APPRAISER NAME, AAA whose USPAP76
qualification with the AAA is valid until 2009.
This appraisal report follows the guidelines of USPAP in that the report provides all
of the necessary information/analysis to satisfy the “retrospective” report
development requirements as defined in Standard 7 (Personal Property, Development) and
the writing requirements of a Self-contained Appraisal as defined in Standard 8
(Personal Property, Reporting).
SAMPLE REPORT -FOR DONATION
USPAP DOES NOT
DICTATE FORM,FORMAT OR STYLE
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 10 OF 34
10
EXPLANATION OF AUTHORSHIP AND ATTRIBUTION77
AUTHORSHIP GLOSSARY
Title - If a generally accepted title for the work exists, that
title is given. If the work is untitled or the title is unknown, a
descriptive title may be assigned and is indicated with an asterisk
(*).
When provenance is unknown and a search of reliable sources fails to
render information concerning a particular artist or work involved,
a value determination is based on artistic merit and market
conditions.
Authorship - When a work is unsigned but generally accepted in the
scholarly community to be by a particular artist, that artist's name
will be indicated as "Ascribed to...". This is the highest category
of authenticity.
When a question of doubt concerning authorship prevails, the
authorship will be indicated as "Attributed to..." a particular
artist or a school.
When a signature exists on a work, but the work does not appear to
be by the hand of such signed artists, the appraiser will indicate
that the work "Bears signature of...". This means that the
appraiser does not believe the work to be by the "signed" artist.
SAMPLE REPORT -FOR DONATION
USPAP DOES NOT
DICTATE FORM,FORMAT OR STYLE
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 11 OF 34
11
GLOSSARY OF TERMS APPLICABLE TO THIS REPORT78
buyer's premium - a percentage of the bid ("hammer") price at an auction; can
range 5 - 25%.
canvas size - the actual size of a work on canvas where the edges are visible.
catalogue raisonné - a scholarly catalogue which should include all the known
works by an artist at the time of compilation; includes essential information
by which works are identified; the definitive reference book.
estimate (est.) - the pre sale dollar amount suggested by an auction house at
which an object is expected to fetch at auction
expressionist - a style of art characterized by distortions of line, shape, and
color based on an emotional reaction of the artist
hammer price - the actual "bid" price at an auction; does not include the
premium
impasto - paint applied with the consistency of thick paste
o/c - oil on canvas
photo-offset lithograph - is the most common way to print limited edition art,
posters, magazines, catalogs, brochures and most other color images on paper.
It is a mechanical four color press process; often a form of transfer printing.
reserve - the agreed upon minimal amount at which an item can be sold at
auction
seller's premium - a percentage of the bid ("hammer") price at an auction;
usually 5 - 15%. It is usually more negotiable than the buyer's premium.
TAM - Tax Advisory Memorandum
watermark - design left in the paper by the paper manufacturer; seen when held
against the light; used to trace the origin of the paper; special markings for
an artist or publisher may incorporate a signature or a device; can be used to
detect fakes -- although it can be faked.
work size - the actual size of a work on board or paper where the edges are
visible
unsold - an artwork that did not sell at auction. The most common reason items
are unsold is because the item failed to reach its reserve (AKA “buy-in”,
“bought-in”, or “bi”). Other reasons an item is unsold could be that the item
was withdrawn based on ownership or authenticity, or that the consigner changed
their minds.
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 12 OF 34
12
DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS79
This certificate of appraisal is given, subject to the terms and conditions
hereinafter set forth, all of which are a part hereof unless expressly set aside
in writing either on the pages of this certificate or by writing attached to the
certificate signed by all parties concerned.
This appraisal consists of 27 (plus 4 exhibits) pages and must be presented in
its entirety to be valid.
This appraisal is prepared solely for charitable contribution purposes using80
the comparative market approach to arrive at the fair market value as of81 82
January 20, 2008. It is to be used solely by Mr. and Mrs. Sam Pull and their83
agents (accountants, attorneys) for income tax purposes. This report can be84 85
relied upon by the Internal Revenue Service and the Famous University Art86
Museum .87
The client shall indemnify, defend, and hold us harmless from and against all
actions, claims, liabilities or expenses incurred as a result of claims based on
or arising from the appraisal, by third parties unrelated to the immediate purpose
of this appraisal.88
Unless otherwise stated herein, this certificate is based only on the readily
apparent identity of the items appraised, and no further opinion nor guarantee of
authenticity, genuineness, attribution, or authorship is made . However, in89
appraising the subject articles, the appraiser found no reason to question the
authenticity of the articles, unless as indicated in the individual description.
The appraiser did not personally examine the artwork. All descriptive information
pertaining to the work was supplied by the client, the Famous University Art
Museum, and/or through standard reference material and the Internet. No reported
scientific and/or laboratory testing has been performed on any works.
Unless otherwise stated herein, the appraised value is based on the whole
ownership and possessory interest undiminished by any liens, fractional interests
or any other form of encumbrance or alienation.90
This certificate is made at the request of the party named for their use. It is
not an indication or certificate of title ownership. The identification of the91
interest of the requesting party is simply that represented to the appraiser by
such party and no inquiry or investigation has been made nor is any opinion given
as to the truth of such representation.92
The value expressed herein is based on the appraiser’s best judgment and opinion93
and is not a representation or warranty that the items will realize that value if
offered for sale at an auction or otherwise. The values expressed are based on
current information on the date stated on the cover page of this report. No94
opinion is hereby expressed as to any future value, nor unless otherwise stated,
as to any past value.95
(Continued on Page 12)
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 13 OF 34
13
DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS(Continued from Page 11)
The appraiser is not responsible if items are sold at a reduced value for future
liquidation. Reported appraised values are the fair market values as defined on
Page 9 of this report. Reported appraised values are not the prices that would
be achieved through discounted or wholesale sales.96
The appraiser has considered the highest and best use of the appraised articles
with respect to the most appropriate, common, and legal marketplace given the
purpose of the appraisal.97
The appraiser has no past interest, no present interest, nor any contemplated
future financial interest in the appraised property. Although Mrs. Pull was a98
student of the appraiser, the appraiser has no other personal interest or bias
with respect to the parties involved. This appraisal was done objectively,99
according to the rules of the IRS (in the Pension Protection Act of 2006 H.R. 4,
Public Law 109-280) , and in accordance with the 2008 Uniform Standards of100
Professional Appraisal Practice . Further, the appraiser has no other interest101
which might tend to prevent making a fair and unbiased appraisal.102
This appraisal was researched and prepared by the appraiser named on the cover
page of this report. Primary research was done by APPRAISER NAME at COMPANY103
NAME. Supplemental research was supplied by office assistants at COMPANY NAME,104
particularly Reah Serch. No other person supplied significant assistance in105
preparation of this report.106
The client/donor provided the appraiser with some oral information regarding the
work listed herein. Although the appraiser routinely checked the client’s
information (when possible), the appraiser is not responsible for the accuracy of
this information.107
Information originally provided by the client through documents and/or auction
catalogues is assumed to be correct, however, the appraiser is not responsible for
any errors or misrepresentations on the part of either the client or the
documentation.
The appraiser did not personally examine any of the comparable sales and/or
offerings with regard to these particular works. The appraiser is relying on
information made available through price data bases regarding authenticity,
condition, and sales information concerning these works.108
Consulting sources are listed in the back of the report. Information furnished109
by consulting sources is assumed to be reliable, but is not guaranteed by this
appraiser or her firm.110
(Continued on Page 14)
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 14 OF 34
14
DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS(Continue from Page 13)
The appraiser is not required to give testimony, be present in any court of law,
or appear before any commission or board by reason of this appraisal, unless prior
arrangements have been made with the appraiser. Should this report be111
challenged in anyway, not limited to litigation, it is understood that the
appraiser is prepared to defend their appraisal, if required. Courtroom
testimony, mediation proceedings, and the necessary preparation are considered to
be separate assignments and will be billed at our then current normal hourly rate
plus expenses as required.
Possession of this report, or copy thereof, does not include the right of
publication without the written consent of the appraiser and her firm. This
report in its entirety, or any part thereof, including the identity of the
appraiser or her firm, shall not be made public through advertising, public
relations, news releases, sales, or other distributive or information media
without the written consent of the appraiser and her firm.112
Copies of this appraisal and notes pertaining to the appraisal, written and
electronic, will be kept in the offices of COMPANY NAME for a minimal period of
five (5) years after the date of issue or two (2) years after final disposition
of any judicial proceedings involving the appraiser, whichever period expires
last. COMPANY NAME will make every effort to store clients/donors records in113
a safe and secure environment, however the firm is not responsible for acts of
war, terrorism, or other such unexpected catastrophes which may affect the
safekeeping of this report.
All matters treating the duties, responsibilities, and liabilities of the
appraiser are in accord with the Valuation Standards and Professional Practices
as outlined by the Appraisal Foundation in the 2008 Uniform Standards of
Professional Appraisal Practice and the Principles of Practice and the Code of
Ethics of the Appraisers Association of America.114
_______________________________________________________________________________© 2009 COMPANY NAME. All Rights Reserved. None of the contents of this appraisal report may be reproduced, stored in a retrieval systemor transmitted in any form or by any mean (electronic, mechanic, photocopying, recording or otherwise) without the prior written permissionof COMPANY NAME and the appraisers' signature.
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 15 OF 34
15
MARKET ANALYSIS115
Recent published auction sales and available gallery sales are listed in the report
following the description of the appraised articles. These listings serve to
substantiate the final appraised value as well as indicate market preferences and
levels. Copies of these sales as well as a copy of this report are kept on file in the116
offices of COMPANY NAME for a period of five years or two years after any judicial
proceedings in accordance with the standards set forth in the 2008 version of Uniform
Standard of Professional Appraisal Practice (Record Keeping, p. 9).117
Given that the art markets are always volatile markets, an overall market valuation
forecast cannot be established. Particularly with the uncertain political and economic
situation of the world after September 11, 2001, a market analysis is difficult to
prepare in these unstable times.
Many factors enter into valuations of fine art beyond pure aesthetic appeal. Among the
principles which may affect future values of items are the basic economic principles of
supply and demand, national and international legislation, the global monetary market,
social attitudes, and design trends. However, based on an analysis of the market since
2000 and an optimistic presumption of a future relatively stable growth, it could be
concluded that certain areas have and will appreciate at a greater rate than others.
After several disastrous seasons in the early 1990s, values in the works of first and
second tier Contemporary artists have stabilized; with some significantly increasing in
value. As expected, the best pieces have and will always fetch premium prices vs.
mediocre pieces.
Contemporary art is always difficult to value since an artist’s work must stay on the
cutting edge in order to remain contemporary. Additionally, an artist must retain a
gallery presence to sustain his values. In the case of Famous artist, during his
lifetime, he had been successful at keeping his style “fresh” and at maintaining a
gallery presence. His work is respected by museums, critics, and art historians. His
work continues to sell at both a gallery and auction level. His auction prices have
significantly risen in the past five years, catching up to his prices at the gallery
level - a feat many contemporary artist’s fail to accomplish.
The MMMMM suite is an interesting work as it is of interest to a variety of collectors,
yet the appraiser is unable to find it marketed in the appropriate marketplace.
Obviously, it has significance to the art collector, but it is also a desirable piece of
interest to a -------- collector and a historical artifact collector. If appropriately
marketed, this suite would have significant value, particularly given its provenance form
the collection of the former Important Person.
Notes: This appraiser does not guarantee any prices or predictions for values in the
future.
Fair Market Value is referred to as “FMV” throughout this report. FMV includes buyer’s
premium as indicated in the 1992 TAM ruling.
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 16 OF 34
16
TOTAL VALUE118
FAIR MARKET VALUE OF DONATION $000.00
GRAND TOTAL $ 000.00
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 17 OF 34
According to the Bid it Up auction catalogue of Modern and3
Contemporary Works of Art, January 12, 2003, lot 121 (Exhibit 4)
Vincent Van Went, the Assistant Curator of Western Art at the Famous4
University Art Museum, email dated October 1, 2008 (Exhibit 2)
Modern and Contemporary Works of Art, Bid it Up Auction, Anytown,5
Anystate Sale - January 12, 2003 Lot 121 (Exhibit 4)
Vincent Van Went, the Assistant Curator of Western Art at the Famous6
University Art Museum, email dated October 1, 2008 (Exhibit 2)
17
DONATED ITEM NUMBER ONEXXXXXXXX
Article Appraised
Number Value Description
1. $ 000.00 Title : XXXXXXXX119
Piece
Description : An energetic abstract expressionist composition120
showing large bold strokes of color on a dark ground, executed with
thick areas of impasto in yellow, white, blue, and grey on a black
ground
Medium : Magna acrylic on canvas121
Artist : Famous artist (American, 1923 - 1996)122
Date : 1979123
Reported markings : Titled XXXXXXXX, dated 1979, and indicated Magna124
on verso (Exhibit 4)3
Reported canvas size : 257.8 x 720.1 cm (101.5 x 283.5 inches)125 4
(28,775.25 square inches)
Reported canvas size : 259.1 x 721.4 cm (102 x 284.5 inches)126 5
Unframed127
Provenance : Bid it Up Auction, Anytown, Anystate Sale - January128
12, 2003 Lot 121 (Exhibit 4).
Purchase price : Unconfirmed; estimate $30,000-40,000.129
Exhibition : Modern and Contemporary Works of Art, Bid it Up130
Auction, Anytown, Anystate Sale - January 12, 2003 Lot 121 (Exhibit
4).
Condition : Good; no significant condition issues (Exhibit 2)131 6
Images : Photo 1132
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 18 OF 34
http://www.artnet.com/galleries/Exhibitions.asp?gid=369&cid=1309617
18
Famous artist133
(1923 - 1996)
Famous artist was a prolific artist who painted throughout his life time. He was
renowned for his fluid and expressive abstracts. Famous artist was born in Prague in
1925, and immigrated to the US and settled in New York in 1942. His artistic career
flourished in the creative atmosphere of New York City where he began exhibiting at
various galleries. The positive reactions eventually led to successful shows in Los
Angeles and Paris throughout the 1960s.
Famous artist studied art in his native land before fleeing Nazi Germany in 1942. In
Manhattan, during the early 1950s, he shared a studio with fellow abstract painter,
Equally famous artist. He began exhibiting his Abstract Expressionist paintings at this
time. His work was included in the Ninth Street Show in New York City in 1951, and in
group exhibitions at the Leo Castelli Gallery, the Stable Gallery, and the Tibor de Nagy
Gallery, among others. After the Ninth Street Show Annual Invitational, exhibitions of
his work were held at the Stable Gallery throughout the 1950s. The Second New York
Painting and Sculpture Annual at The Stable Gallery in 1953, included an introduction
by Clement Greenberg.
In the 1960s he became associated with Color Field painting and Lyrical Abstraction.
He was included in Post-painterly Abstraction, a 1964 exhibition curated by Clement
Greenberg. Famous artist was a friend of Clement Greenberg, who in turn introduced him
to Jackson Pollock and other pivotal artists of the New York School.
As his reputation grew, galleries from around the world began to take notice. In the
1970s and 1980s, exhibitions of Famous artist paintings were held at influential
galleries throughout the United States, England, France, and Germany.
In the 1970s, Famous artist began expanding in both shape and color in his canvases.
This change signaled not only a revolution within Famous artist’ own work, but it marked
the emergence of Famous artist as a key figure amongst the Color Field painters.
Previously thought to be a second rate Abstract Expressionist in a milieu that included
superstar painters such as Mark Rothko and Helen Frankenthaler, Famous artist now was
a forerunner in color field paintings of the 1970s. In his mural-sized paintings of
this period, Famous artist created a virtual narrative structure, set against earth-
toned grounds that anchor the color fields while simultaneously enabling their motion.
These works are exuberant and luxurious, filled with a wide range of radiant light and
atmosphere.7
As his work increased in size (up to 24 feet wide), his technique became more fluid,
bolder, and expressive. During the last three decades of his career, Famous artist had
more than sixty solo exhibitions around the world. He was represented by the Andre
Emmerich Gallery and Knoedler Contemporary Arts in New York for more than thirty years.
In 1970 he settled with his family in Vermont, but continued to paint and occasionally
stayed in Philadelphia, where his paintings were regularly exhibited.
(Continued on Page 18)
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 19 OF 34
19
FAM OUS ARTIST
(Continued from Page 17)
Famous artist’s technique required the use of Magna paint, an oil-based acrylic paint.
Magna was originally developed by the paintmakers Leonard Bocour and Sam Golden for
Morris Louis. Famous artist would apply thick layers of color over washes, scrubbing
the paint into the unprimed canvas. He used staining, brushing, and other ways of
applying color. His paintings were generally large in size and scale, but he also made
numerous small paintings as well.
Throughout the decades of the 60s, 70s, and 80s, Famous artist taught and lectured at
several prestigious institutions. They included Dartmouth College, Hanover, New
Hampshire (1964); University of Pennsylvania, Philadelphia (1965-1967); and Cornell
University, Ithaca, New York (1967-1972). He had the longest relationship with the
School of the Museum of Fine Arts, Boston, where he taught from 1972 to 1989.
His work is part of many museum collections which include, the Whitney Museum of
American Art, New York; the Guggenheim Museum, New York; the San Francisco Museum of
Modern Art, California; Yale University Art Gallery, New Haven, Connecticut; the
Smithsonian American Art Museum, Washington, D.C.; Georgia Museum of Art, Athens,
Georgia; Rose Art Museum of Brandeis University, Waltham, Massachusetts; the Kemper
Museum of Contemporary Art, Kansas City, Missouri; Newark Museum, Newark, New Jersey;
Famous University Art Museum, Famous, New Jersey; the Albright-Knox Art Gallery,
Buffalo, New York; the Herbert F. Johnson Museum of Art, Ithaca, New York; the Parrish
Art Museum, Southampton, New York; the Portland Art Museum, Portland, Oregon; the Museum
of Fine Arts, Houston, Texas; the Boston Museum of Fine Arts, Massachusetts; and
Metropolitan Museum of Art, New York.
Famous artist was awarded two Guggenheim Fellowships (1969 and 1972) and he also
received the National Council on the Arts Award (1970).
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 20 OF 34
20
COMPARABLE SALES AND OFFERINGS FOR XXXXXXXXAUCTION SALES / OFFERINGS134
Image goes
here
10/01/08 - Christie’s, NY, lot 19, -----, 1970, a/c, 72 x 72 (5,184
square inches), est. $25,000-35,000; sold $43,000 (inc. premium) ($8.29
per square inch)
Image goes
here
03/01/08 - Christie’s, NY, lot 27, -----, a/c, 1970, 54 x 152 (8,208
square inches), est. $25,000-35,000; sold $61,000 (inc. premium) ($7.43
per square inch)
Image goes
here
01/12/08 - Sotheby’s, NY, lot 72, -----, 1970, 102 x 248 (25,296 square
inches), est. $50,000-70,000; sold $37,000 (inc. premium) ($1.46 per
square inch)
Image goes
here
12/28/07 - Christie’s, NY, lot 31, -----, 1980, a/c, 99 x 67 (6,633
square inches), est. $25,000-35,000; est. $25,000-35,000; sold $38,400
(inc. premium) ($5.79 per square inch)
Image goes
here
12/28/07 - Christie’s, NY, lot 35, -----, 1970, a/c, 62 x 116 (7,192
square inches), est. $40,000-50,000; sold $38,400 (inc. premium) ($5.34
per square inch)
Image goes
here
11/12/07 - Sotheby’s, NY, lot 36, -----, 1970, a-magna/canvas, 60 x 162.2
(9,732 square inches), est. $25,000-35,000; sold $45,000 (hammer) ($4.62
per square inch)
Image goes
here
10/15/07 - Sotheby’s, NY, lot 72, -----, 1975, magna/canvas, 72 x 72
(5,184 square inches), est. $20,000-30,000; sold $42,000 (inc. premium)
($8.10 per square inch)
Image goes
here
09/23/07 - Christie’s, NY, lot 24, -----, 1985, a/c, 53 x 116 (6,148
square inches), est. 20,000-30,000; sold $54,000 (inc. premium) ($8.78
per square inch)
Image goes
here
01/12/07 - Christie’s, NY, lot 53, -----, 1975, a/c, 51 x 116 (5,916
square inches), est. $8,000-12,000; sold $26,400 (inc. premium) ($4.46
per square inch)
Image goes
here
12/12/06 - Christie’s, NY, lot 15, -----, 1975, a/c, 68 x 118 (8,024
square inches), est. $8,000-12,000; sold $72,000 (inc. premium) ($8.97
per square inch)
Image goes
here
09/15/06 - Christie’s, NY, lot 24, -----, 1965, o/c, 57 x 89 (5,073
square inches), est. $15,000-20,000; sold $47,800 (inc. premium) ($9.42
per square inch)
Image goes
here
05/12/05 - Christie’s, NY, lot 18, -----, 1975, 96 x 96 (9,216 square
inches), work on canvas, est. $15,000-20,000; sold $57,360 (inc. premium)
($6.21 per square inch)
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 21 OF 34
21
COMPARABLE SALES AND OFFERINGS FOR XXXXXXXXGALLERY SALES / OFFERINGS135
The following large Famous artist works were available at the Famous Art Gallery, New
York on September 25, 2008
Image goes here -----, 1970
Magna acrylic on canvas
78½ x 195 inches (15307.5 square inches)
Asking $140,000 ($9.14 per square inch)
Image goes here -----, 1971
Magna acrylic on canvas
43 x 166 inches (7138 square inches)
Asking $115,000 ($16.11 per square inch)
Image goes here -----, 1972
Acrylic on canvas
95 x 256 inches (24,320 square inches)
Asking $125,000 ($5.14 per square inch)
Image goes here -----, 1973
Magna acrylic on canvas
74 x 197 inches (14578 square inches)
Asking $140,000 ($9.60 per square inch)
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 22 OF 34
This calculates at $4.17 per square inch - less than any of the8
comparables)
22
VALUATION FOR XXXXXXXX136
The average square inch price for the thirteen (13) large comparables that
sold at auction in recent years was $6.70 per square inch. Applying this
figure to XXXXXXXX (28,775.25 square inches) sets the value of XXXXXXXX at
$000 (28,775.25 x $0 = $000). However, the larger works are more
difficult to sell as their market is limited by the requisite wall space.
The auction market is not necessarily the appropriate market for the
extremely large Famous artist’ works because they tend to be site specific
works. Work of this size were usually commissioned works. Since the
artist died in 1996, it is impossible to ascertain his fees for
commissioned works in the 2008 gallery market.
However, the gallery market may be a better, more appropriate marketplace
as there readily available larger works. Works available from the Famous
Artist Gallery range from $000-000 (see Page --). The average price per
square inch for these paintings is $00. Applying this figure to XXXXXXXX
(28,775.25 square inches) sets the value of XXXXXXXX at $000 (28,775.25 x
$00 = $000).
Using the average auction and gallery square inch price ($0+ $0 ÷ 2 = $0)
would set the value of this work at $0 (28,775.25 square inches x $0 =
$0). However, since the larger works are more difficult to sell as their
market is limited by the requisite wall space, a discount of 50% is
applied to this figure to establish the 2008 FMV at $0, rounded to $000
($0 - 50% = $0, rounded to $000 ).8
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 23 OF 34
The artist may have been Artist #7. Artist #7's work may have been9
censured because of a future incident. Details not included in this sample
report.
Quote from one of artists. . Details not included in this sample10
report.
Artist #6 comment11
23
DONATED ITEM NUMBER TWOMMMMM
Article Appraised
Number Value Description
2. $ 000.00 Title : MMMMM (Cat. Rais. #)137
Piece
Description : A suite of three (3) colored prints (one printed on138
both sides) comprised of various artists’ interpretations of imagery
-----. On each sheet are three (3) or four (4) black blank fields
where additional ---------could have been placed . Additional9
images include simply printed ------------------ by Artist #1, --
with three (3) figures by Artist #2, --------- with US images on
transfer photos by Artist #3, ----- featuring the World Trade
Center, Artist #4 -------- images, and ----- image by Artist # 5
Medium : Photo offset lithographs printed in two (2) colors on139
watermarked Arches paper.
Artists : Artist #1 (American, 1918 - 1988), Artist #2 (American,140
born 1945), Artist #3 (American, 1915 - 1995), Artist #4 (American,
1928 - 1998), Artist #5 (American, born 1939)
Publisher : -------------, Inc., New York141
Printer : -----, Brooklyn, New York (assisted by Tom142
Gormley)10
Date : 1972143
Reported markings : One (1) single and one (1) double-sided print144
are numbered and dated at lower right, pencil-signed by each artist
(except Artist #1 whose signature is blind-stamped) in the block
provided for signatures; one (1) single-sided print is numbered and
dated at lower left, pencil-signed by each artist (except Artist #1
whose signature is blindstamped) in the block provided for
signatures11
(Continued)
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 24 OF 34
Cat. Rais. quote12
Vincent Van Went, the Assistant Curator of Western Art at the Famous13
University Art Museum, email dated October 1, 2008 (Exhibit 2)
Knestrick, Walter G. Red Grooms: The Graphic Work. New York: Harry14
N. Abrams, 2001, page 302.
Vincent Van Went, the Assistant Curator of Western Art at the Famous15
University Art Museum, email dated October 1, 2008 (Exhibit 2)
24
(Continued)
Edition number : 65/85 (from the total edition of 85 plus 10145
artist’s proofs)Reported work size : 68.6 x 55.9 cm (27 x 22146
inches)12
Reported work size : 70.5 x 56.0 cm (27 3/4 x 22 1/16 inches)147 13
Reported image size : 61.6 x 50.2 cm (24½ x 19 3/4 inches)148 14
Unframed149
Provenance : Unknown150
Condition : Good; no significant condition issues (Exhibit 2)151 15
Images : Photos 2-3152
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 25 OF 34
Although both retail sales are from Fall 2008, 9-10 months after the16
date of donation, the appraiser does not feel that the market has changed and
the galleries would have the same asking prices in January 2008 as in Fall
2008.
Based on the conversion rate as of October 2, 2008 (date of research),17
1£ = $1.992 (per http: //www.oanda.com/convert/fxhistory).
25
COMPARABLE SALES AND OFFERINGS FOR MMMMM153
AUCTION SALES / OFFERINGS
01/17/2008 - Stockholms Auktionsverk, Stockholm, lot 12, MMMMM, one sheet,
est. $1,967; unsold
12/26/2006 - Phillips, NY, lot 22, MMMMM, one sheet, est. $1,500-2,000; sold
$1,500 (hammer)
04/27/2005 - Weschler’s, Washington, D.C., lot 33, MMMMM, one sheet, est.
$1,000-1,500; sold $1,495 (inc. premium)
RETAIL SALES / OFFERINGS16
October 2008 - Small Gallery, London, MMMMM, one sheet; asking £3,000
($5,976)17
September 2008 - Not-so-Famous Gallery, Washington, D.C., MMMMM, each sheet;
asking $3,500 ($10,500 for three)
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 26 OF 34
26
VALUATION OF MMMMM154
Many factors enter into the rarity of this suite. Some of these factors are
not generally known/considered to the public, thus finding the appropriate
market difficult to locate.
Aside from the obvious that these signed collaborative works were done by
major artists demonstrating their current styles, there is an historical
importance to the type of paper and size of images. Never before had the
------ permitted use of their paper to be used for artwork. This gives the
work historical significance that may attract not just an art collector, but
also, a ----- collector, or a history buff.
Also important to these works are Artist #4's choice of images - the World
Trade Center. Since September 11 , images of the World Trade Center haveth
increased in value. Again, this work would attract the art collector as
well as the history/photography collector.
Additionally, these prints record the events of the famous, but short-lived
publisher, a phenomenon important to the history of 20 century art. Theth
importance of this material is substantiated in the fact that the MOMA
currently holds the famous publisher’s archives.
Lastly, given the ----- nature of this work, the provenance is particularly
meaningful. Knowing that this work is from the collection of the former
Famous Person adds to its value.
As such, it is unlikely that the listed comparables are true indicators of
the value of these works. First, the only full set was at a not-so-famous
gallery in Washington D.C. When the appraiser called the gallery to discuss
these prints, the salesperson was unfamiliar with any of the history or
significance of the works. Ironically, the only person who recognized the
rarity and importance of these works was outside of the US at the small
gallery in London.
As such, given the unusual nature of the suite, with consideration to the
absence of market recognition, the appraiser is using the gallery in London
as the best comparable at $5,976 each. However, recognizing that some value
is lost due to the weakness of the American dollar, the values are based on
$5,000 each, establishing the 2008 FMV for the three (3) works in MMMMM, to
be $15,000.
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 27 OF 34
27
SOURCES155
THE FOLLOW ING REFERENCE BOOKS AND PRICE GUIDES W ERE CONSULTED:
_____. Annual Guide to Galleries, Museums, Artists. New York: Art in America,
1998 - 2008.
_____. Uniform Standards of Professional Appraisal Practice and Advisory
Opinions. 2008-2009 Edition. Washington, D.C.: Appraisal Standards Board,
2007.
Cattell, Jaques, ed. Who's Who in American Art. New York: R.R. Bowker, 1973 -
2004.
Named Catalogue Raisonné. New York: Harry N. Abrams, 2002.
THE FOLLOW ING GALLERIES, EXPERTS, AND AUCTION HOUSES
WERE SPECIFICALLY CONSULTED:
Christie’s, New York
New York Fine Art, New York
Not-so-Famous Gallery, Washington, D.C.
Museum of Modern Art, New York
Small Gallery, London
Famous Art Gallery, New York
Another Gallery, New York
Phillips, New York
Bid it Up, Anytown
Sotheby’s, New York
Stockholms Auktionsverk, Stockholm
Weschler’s, Washington, D.C.
THE FOLLOW ING INTERNET SITES WERE SPECIFICALLY CONSULTED:
www.artfact.com
www.artmuseum.Famous.edu
www.artnet.com
www.artprice.com
www.askart.com
www.gordonsart.com
www.oac.cdlib.org
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 28 OF 34
28
1.AAA Elements of a Correctly Prepared Appraisal, #2; AAA #17; IRS Pub. 561
2.USPAP 8-2(a)(i); AAA #1; AAA #17
3.IRS Publication 561
4.AAA #17
5.USPAP 8-2; AAA #6
6.AAA #17
7.AAA #17
8.AAA #17
9.USPAP 8-3; AAA #3
10.Pub. 561; AAA #13
11.Pub. 561; AAA #13
12. USPAP Ethics
13.USPAP 8-3
14.USPAP 8-3; Pub. 561
15.USPAP 8-3; AAA #3
16.AAA #3
17.USPAP 8-3; AAA #3
18. AAA #9
19.AAA #3
20.USPAP 8-3; Pub. 561; AAA #3
21.USPAP 8-3; Pub. 561
22.USPAP Ethics: Management
23.USPAP Ethics: Management; Pub. 561
24.USPAP 8-3
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 29 OF 34
29
25.USPAP Ethics: Conduct; 8-2(a)(ii); USPAP 8-3; Pub. 561; AAA #5
26.Pension Protection Act; IRS Section 6695A
27.Pub. 561
28.Pub. 561
29.USPAP 8-3
30.USPAP 8-3; AAA #3; Pub. 561; PPA
31.USPAP 7-2 (d); USPAP Statement 3
32.USPAP 8-2; AAA #6
33.USPAP 8-2; AAA #6
34.USPAP 8-2(a)(x); AAA
35.AAA #17
36.USPAP 8-2(a)(ii)
37. AAA #10
38.Pub. 561; AAA #10
39.USPAP 8-2(a)(vi); Pub. 561; AAA #10
40.USPAP 8-2(a)(vi); AAA #10
41.USPAP 8-2(a)(ii); AAA #3; Pub. 561
42.USPAP 8-2(a)(ii); Pub. 561; PPA
43.USPAP 8-2(a)(ii); AAA #13; Pub. 561
44.USPAP 8-2(a)(ii); AAA #10; Pub. 561; PPA
45.AAA IV
46.USPAP Scope of Work Rule; AAA #4
47.USPAP Scope of Work Rule; AAA #4
48.USPAP Scope of Work Rule; 8-2(a)(I); 8-2(a)(ix); AAA #4; Pub. 561
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 30 OF 34
30
49.USPAP Scope of Work Rule; 8-2(a)(I); AAA #4; Pub 461
50.USPAP Scope of Work Rule; 7-2(e)(iv); 8-2(a)(iv); AAA #4; Pub 461
51.USPAP Scope of Work Rule; 8-2(a)(ii); AAA #4; Pub 461
52.USPAP Scope of Work Rule; 8-2(a)(I); AAA #4; Pub 461
53.USPAP Scope of Work Rule; Pub 461
54.USPAP Scope of Work Rule; 8-2(a)(vi); AAA #4; Pub 461
55.USPAP Scope of Work Rule; 7-2(e)(iv); 8-2(a)(iv); AAA #4; Pub 461
56.USPAP Scope of Work Rule; 7-2(e)(iii); AAA #4; AAA #12; Pub. 561
57.USPAP Scope of Work Rule; 8-2(a)(x); AAA #4; AAA #12
58.USPAP Scope of Work Rule; 8-2(a)(x); AAA #4; AAA #12
59.USPAP Scope of Work Rule; 8-2(a)(x); AAA #4; AAA #12
60.USPAP Scope of Work Rule; 7-2(e)(iii); AAA #4; AAA #12
61.USPAP Scope of Work Rule; 7-2(c)(iv); AAA #4; AAA #12
62.USPAP Scope of Work Rule; 7-2(e)(iii); 8-2(a)(v); AAA #4; AAA #12
63.USPAP Scope of Work Rule; 8-2(a)(x); AAA #4; AAA #12
64.USPAP Scope of Work Rule; AAA #11; Pub. 561
65.USPAP Scope of Work Rule; 8-2(a)(x); AAA #4; AAA #12
66.USPAP Scope of Work Rule; 8-2(a)(viii); AAA #4; AAA #12
67.USPAP Scope of Work Rule; AAA #11; Pub. 561
68.USPAP Scope of Work Rule; 7-2(e)(I); AAA #4; IV; Pub. 561
69.USPAP Scope of Work Rule; 7-2(e)(ii) & (iii); AAA #4; Pub. 561
70.USPAP Scope of Work Rule; 8-2; AAA #4
71.USPAP Ethics: Confidentiality; Scope of Work Rule; AAA #4; Pub. 561; GrammLeach Bliley Act
72.USPAP Scope of Work Rule; 8-2(a)(v); AAA #4; Pub. 561
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 31 OF 34
31
73.USPAP Scope of Work Rule; 8-2(a)(ix); AAA #4; Pub. 561
74.USPAP Scope of Work Rule; 8-2(a)(v); AAA #4; Pub. 561
75.USPAP Scope of Work Rule; 8-2(a)(v); AAA #4
76.USPAP Scope of Work Rule; 7; 8; 8-3; AAA #4; Pub 861
77.USPAP Scope of Work Rule; AAA #4; IV
78.USPAP Preamble; AAA #12; IV
79.USPAP Preamble; Scope of Work; AAA #12
80.USPAP Preamble; 8-2(a)(ii); AAA #12; Pub. 561
81.USPAP 8-2(a)(viii); AAA #7; Pub 861
82.USPAP Preamble; 8-2(a)(v); AAA #12; Pub. 561
83.USPAP Preamble; 8-2(a)(I); AAA #12; Pub. 561
84.USPAP Preamble; 8-2(a)(I); AAA #12; Pub. 561
85.USPAP Preamble; 8-2(a)(ii); AAA #12; Pub. 561
86.USPAP Preamble; 8-2(a)(I); AAA #12; Pub. 561
87.USPAP Preamble; 8-2(a)(I); AAA #12; Pub. 561
88.USPAP Preamble; 8-2(a)(ii); AAA #12
89.AAA #12; Pub. 561
90.USPAP Preamble; AAA #12; 7-2(e)(iii); 8-2(a)(v)
91.USPAP Preamble; AAA #12; 7-2(e)(iii); 8-2(a)(v)
92.USPAP Preamble; AAA #12
93.USPAP 8-3; AAA #12; Pub. 561
94.USPAP Preamble; 8-2(a)(vi); AAA #12
95.USPAP Preamble; 8-2(a)(v); AAA #12
96.USPAP Preamble; 8-2(a)(viii); AAA #12
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 32 OF 34
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97.USPAP Preamble; 8-2(a)(ix); AAA #12
98.USPAP Ethics; 8-3; AAA #12; Pub. 561
99.USPAP 8-3; AAA #12; Pub. 561
100.USPAP Ethics; Scope of Work Rule; 8-2(a)(x); AAA #12
101.USPAP Scope 8-3; AAA #12; PPA
102.USPAP Ethics; AAA #12; Pub. 561
103.USPAP 8-3; AAA #12; Pub. 561
104.USPAP 8-3; AAA #12; Pub. 561
105.USPAP 8-2(a)(vii); 8-3; AAA #12; Pub. 561
106.USPAP 8-3; AAA #12; Pub. 561
107.USPAP Preamble; AAA #12
108.USPAP Preamble; AAA #12
109.USPAP 7; 8-2(a)(vii); AAA #12
110.USPAP Preamble; AAA #12
111.USPAP Preamble; AAA #12
112.USPAP Preamble; AAA #12
113.USPAP Preamble; Ethics: Record keeping; AAA #12
114.USPAP Preamble; 8-3; AAA #12
115.USPAP Scope of Work Rule; 8-2(a)(viii); AAA #12; Pub. 561
116.USPAP Scope of Work Rule; 8-2(a)(viii); AAA #12; Pub. 561
117.USPAP Ethics: Record keeping; AAA #12
118.USPAP Preamble; AAA #12; Pub. 561
119.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
120.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 33 OF 34
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121.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
122.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
123.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
124.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
125.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
126.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
127.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
128.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
129.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
130.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
131.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
132.USPAP 8-2 (a)(iii); AAA #11; Pub. 561
133.USPAP 8-2 (a)(iii); AAA #16; Pub. 561
134.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
135.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
136.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
137.USPAP 8-2 (a)(viii); AAA #11; Pub. 561
138.USPAP 8-2 (a)(viii); AAA #11; Pub. 561
139.USPAP 8-2 (a)(viii); AAA #11; Pub. 561
140.USPAP 8-2 (a)(viii); AAA #11; Pub. 561
141.USPAP 8-2 (a)(viii); AAA #11; Pub. 561
142.USPAP 8-2 (a)(viii); AAA #11; Pub. 561
143.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
144.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
Appraiser’s nameAddressPhone
MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM
2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 34 OF 34
34
145.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
146.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
147.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
148.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
149.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
150.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
151.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
152.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
153.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
154.USPAP 8-2 (a)(viii); AAA #16; Pub. 561
155.AAA IV
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APPRAISERS’ CERTIFICATION
APPRAISAL COMPANY NAME is a registered firm of appraisers qualified to appraise
residential contents, fine art, antiques, and jewelry. APPRAISER’S NAME, AAA,
(Fine Art Appraiser) examined and photographed all articles. She closely
examined and appraised the articles of fine art, silver, and china. ---- -. ----
- (Decorative Art Appraiser) examined and appraised all articles of furniture and
rugs. -------- ------, ---. assisted in the examination and the appraisal of the
Fine and Decorative art. ---- -----, GG examined and appraised all items of
jewelry.
Valuation is based solely on personal research and analysis of comparative market
data as performed by the appraisers and office assistants at APPRAISAL COMPANY
NAME. No other party was significant in the valuation of the appraised property.
Although the statements of fact contained in this report are true and correct,
the reported analyses, opinions, and conclusions are limited only by the reported
assumptions, extraordinary assumptions, limiting conditions, and hypothetical
conditions. The values expressed herein are based on the appraisers’ best
judgement and opinion and are not representations or warranties that the items
will realize that value if offered for sale in an appropriate market within the
United States.
The appraisers, without any past, present, or contemplated future interest or
bias which might tend to prevent a fair and objective appraisal declare the
current retail replacement value of each item.
Compensation for this appraisal is not contingent upon the arrived valuation.
Fee is based on an hourly rate plus expenses. No person, group, or organization
was given a fee in connection with the procurement of this appraisal assignment.
Further, compensation is not contingent upon the reporting of a predetermined
value or direction in value that favors the cause of the client, the amount of
the value estimate, the attainment of a stipulated result, or the occurrence of
a subsequent event.
The objective of this report is to provide an unbiased retail replacement value
guideline and a basis for insurance portfolio evaluation.
Photographs, when included, are for reference in the event of a claim under an
insurance policy.
This is a partial contents appraisal. Appraisers only appraised articles of Fine
and Decorative Art and Jewelry as designated by the client.
This report has been written according to the rules of the 2008-2009 USPAP
(Uniform Standard of Professional Appraisal Practice). This appraisal is
considered to be a “current” summary appraisal report.
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APPRAISERS’ CERTIFICATION(Continued from Page 1)
Although these certification pages include salient information regarding the
methodology of the report, additional information regarding the scope of work,
assignment conditions, and disclaimers are important to understand the entire
appraisal process. As such, the entire report is required to fully understand
the assignment and this certification page encompasses the entire report and is
not valid without reading and understanding the entire report.
Total pages of report:
Total number of articles appraised:
Total number of photographs:
Examination dates: March 28 and June 1, 2008
Research dates: March 29 - August 1, 2008
Effective valuation date: June 1, 2008
Issue date of the report: August 1, 2008
APPRAISER’S NAME, AAA ---- -. -----
Appraisers Association of America, Appraisers A s s o c i a t ion of
America,
Certified Member (Fine Art, silver, porcelain) Member (Decorative Art)
---- ----- GG (Jewelry)
Graduate Gemmologist
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CV’s for each appraiser who signs the report
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TABLE OF CONTENTS
Appraisers’ Certification Page 1
Appraisers’ Qualifications Pages 2a - 2c
FIRST APPRAISER’S NAME, AAA Page 2
SECOND APPRAISER’S NAME Page 2a
THIRD APPRAISER’S NAME Page 2c
Table of Contents Page #
Scope of Work: Appraisal Method and Definition of Value Pages # - #
Explanation of Authorship and Attribution Page #
Disclaimers, Limiting Conditions and Assumptions Pages # - ##
Market Analysis Page ##
Total Value Page ##
Schedule of Fine Art
Article 1 - # Pages ## - ##
Sources Pages ## - ##
References Books and Price Guides Page ##
Galleries, Experts, Auctions, Retail Stores Page ##
Internet Sites Page ##
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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE
PROBLEM TO SOLVE: The appraisers were asked to provide a current retail
replacement value for a collection of fine and decorative art for insurance
purposes. With the client’s approval/permission, this appraisal report will be
sent to his designated insurance company. This report is not valid for any other
purpose.
CATEGORY OF ITEM S EXAM INED: Late 19 and 20 century art, craftsman and antiqueth th
furniture, rugs, silver, china, and art glass.
CLIENT: Owner of the artwork, Dr. Diane Pill and Mr. Justin Case.
OW NER OF THE ARTW ORK: The client, Dr. Diane Pill and Mr. Justin Case.
OW NERSHIP INTEREST / ART LOSS REGISTER: The question of title was not an issue.
Client provided the appraisers with detailed invoices for major works. The
client did not feel it necessary to perform Art Loss Register inquiries for the
other works.
AUTHENTICITY: Although the appraisers are not authenticators, the appraisers had
no reason to doubt the authenticity of the works, except as noted and appraised
accordingly.
EFFECTIVE DATE OF APPRAISAL: Values expressed in this appraisal are effective on the
most recent examination date, June 1, 2008.
USE OF APPRAISAL: Insurance.
USER(S) OF APPRAISAL: This appraisal can be used and relied upon by the client and
a designated insurance company / agent / broker / underwriter / adjustor. Any
other user is considered an unintended user.
GENERAL ASSIGNM ENT CONDITIONS: The appraisers were allowed adequate time to examine,
photograph, and research the articles listed herein.
Appraisers were given significant documentation for some articles and no
documentation for other articles.
SPECIFIC ASSIGNM ENT CONDITIONS (ASSUM PTIONS): The appraisers assume the mediums to be
as represented. Specific mediums were not tested as they are not pertinent to
the appraised value of these works.
SPECIFIC ASSIGNM ENT CONDITIONS (EXTRAORDINARY ASSUM PTIONS): Appraisers were provided with
some primary documentation for these works. The appraisers assume this
information is accurate and correct.
The appraisers assume the verbal information provided by the client to be
correct.
Information concerning provenance or sales history on certain articles was not
made available to the appraisers. Provenance may play a significant role in
valuation and is not considered in this report.
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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 5)
The appraisers assume the works described and pictured herein are the pieces
which are the subject of this appraisal and covered under the client’s insurance
policy. The appraisers assume that these articles are not now nor will ever be
substituted with other articles by the client in the event of a loss.
The appraisers assume authorship to be authentic, including signatures to be by
the named artists.
Natural gemstones are processed from the time they are extracted from the earth
by one or more traditionally accepted methods. Therefore, unless otherwise
stated, all colored stones are presumed to have been subjected to a stable and
possibly undetectable color/clarity enhancement process. Value conclusions are
based on these universally practiced and accepted processes.
All pearls are assumed to be cultured or “farmed”, unless accompanied by
documentation supporting a natural origin.
Marks on objects (trademarks, signatures, maker’s marks, serial numbers) may
affect the value of a piece. For the purpose of this appraisal, the appraisers
assume that all markings are authentic, unless otherwise indicated (This is also
considered a Limiting Condition).
The appraisers are not authenticators. As such, in certain cases the appraisers
may recommend authentication a specific marks, age, or authorship.
Authentication of this nature is not the responsibility of the appraisers (This
is also considered a Limiting Condition).
The appraisers assume the client retains full title to works.
The appraisers assume these works were previously traded in an appropriate market
without any unusual market stimuli affecting its sale or transaction.
SPECIFIC ASSIGNM ENT CONDITIONS (LIM ITING CONDITIO NS): This report is limited to the
information provided by the client (This is also considered an Extraordinary
Assumption).
The appraisers did not remove all works from the wall due to their size or
location. The appraisal is limited by what appears on the recto (This is also
considered an Extraordinary Assumption). Works not examined on verso will be
identified as such in the individual descriptions.
The appraisers did not remove any paintings or prints from their mattes and/or
frames to check for signature, markings, and condition. The appraisal is limited
by what appears within the mattes and/or frames (This is also considered an
Extraordinary Assumption).
Only when physically possible and not evasive did the appraisers examine under
the upholstery for signature, markings, and conditions (when applicable). The
appraisal is limited by what appears on the surface (This is also considered an
Extraordinary Assumption).
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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 6)
Only when physically possible, did the appraisers examine undersides and back
rails of furniture for signatures and condition (when applicable) (This is also
considered an Extraordinary Assumption).
Only when physically possible, did the appraisers remove drawers to examine for
signatures (when applicable) (This is also considered an Extraordinary
Assumption).
Only when physically possible, did the appraisers move heavy furniture to
thoroughly examine for signatures and condition (when applicable) (This is also
considered an Extraordinary Assumption).
Only when physically possible, did the appraisers lift stone slabs atop furniture
to examine for signatures and condition (when applicable) (This is also
considered an Extraordinary Assumption).
The appraisers did not examine or test the workings of clocks for accuracy and
precision (when applicable) (This is also considered an Extraordinary
Assumption).
Chandeliers and sconces were not removed from the ceiling/wall to examine for
signatures or markings (This is also considered an Extraordinary Assumption).
The appraisers did not examine each globe/crystal on chandeliers/sconces/lighting
fixtures for signature or condition (This is also considered an Extraordinary
Assumption).
The appraisers did not examine each works under mounts or protective bases if not
readily removable for signature or condition (This is also considered an
Extraordinary Assumption).
The appraisers did not examine or test electrical works for safety and / or
condition of the wiring (This is also considered an Extraordinary Assumption).
The appraisers did not test any metals for the silver/gold content. The
appraisers relied on the validity/authenticity of the silver/gold markings (This
is also considered an Extraordinary Assumption).
The appraisers did not remove any stones from their mounts. The weight, grade,
color, and clarity may be limited by the “in mount” examination. As such, this
appraisal is limited by what appears within the mount (This is also considered
an Extraordinary Assumption).
The appraisers may be unable to ascertain the origin of pearls due to limitations
of portable equipment. As such, in some cases, expert analysis and X-ray
procedures may be recommended, Determination of pearl origin is not the
responsibility of the appraisers (This is also considered an Extraordinary
Assumption).
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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 7)
When examining diamonds and colored stones, every reasonable effort has been made
to determine the existence of a fracture filling, clarity, or color enhancement
process. However, no binding representation can be made in all circumstances as
to the existence or nonexistence of such process. Enhancement procedures are
often undetectable through the use of a standard portable laboratory. Detection
of enhancements is limited by the gemological equipment used (This is also
considered an Extraordinary Assumption).
The appraisers are not conservators or jewelry repair technicians. As such, they
did not prepare a condition report. This report is limited by the appraisers’
visual inspection. No other condition report was supplied (This is also
considered an Extraordinary Assumption).
When examining diamonds and colored stones, every reasonable effort has been made
to determine the existence of a fracture filling, clarity, or color enhancement
process. However, no binding representation can be made in all circumstances as
to the existence or nonexistence of such process. Enhancement procedures are
often undetectable through the use of a standard portable laboratory. Detection
of enhancements is limited by the gemological equipment used (This is also
considered an Extraordinary Assumption).
The appraisers are not conservators or jewelry repair technicians. As such, they
did not prepare a condition report. This report is limited by the appraisers’
visual inspection. No other condition report was supplied (This is also
considered an Extraordinary Assumption).
SPECIFIC ASSIGNM ENT CONDITIONS (HYPOTHETICAL CONDITIONS): No Hypothetical Conditions
exist.
EXAM INATION AND M ETHOD OF EXAM INATION OF FINE AND DECORATIVE ART: The appraisers examined
the works in the client’s home in Greenwich, Connecticut, under daylight,
incandescent light, and/or a halogen flashlight. An ultra-violet light was not
used as the environment was not properly conducive for such examination.
When appropriate, the appraisers examined certain objects with a 5/7/20X
magnification optical quality loupe.
The appraisers were able to ascertain medium, style, and quality of works from
personal examination, referencing photographs, supporting documentation, and
personal research.
The appraisers measured most works. Measurements are given to the nearest 1/8
inch; height precedes width unless otherwise stated. On certain large works, the
appraisers accepted the information from the receipts, if available. Works not
measured by the appraisers will be identified as such in the individual
descriptions.
No condition report was supplied. The appraisers assigned each piece a general
condition comment - good, fair, or poor - and a qualification when appropriate.
“Condition” refers to what is considered generally acceptable, with ordinary wear
and tear for its type, unless otherwise noted.
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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 8)
M ETHOD OF EXAM INATION OF JEW ELRY: APPRAISER’S NAME, AAA, briefly examined the items
in the client’s home in Greenwich, Connecticut, under daylight while
photographing the collection.
The gemmologist, ---- -----, more thoroughly examined and evaluated the items in
this appraisal by using the accepted standards of the jewelry industry and those
of the Gemmological Institute of America. Data was collected “on site” and in
accordance with those standards by using careful observation and professional
equipment. Items were examined through one or more of the following
devices/equipment: a portable Gemmological laboratory, an American Optical 570
Binocular Microscope with 10x-63x magnification, 10x loupe, a fiberoptic probe
illuminator (with monochromatic filter), long and short wave ultraviolet (UV)
fluorescence, Rayner Refractometer, dichroscope, spectroscope, electronic scales,
leveridge gauge, G.I.A. Gem Set, Gem Dialogue Color Comparison, Diamond Grading
Light Source, G.I.A. diamond master comparison stones, and a metal testing kit.
The quality grade of any gemstone is restricted by various types of mountings,
settings, and lighting conditions. This quality grade of any gem may differ if
it is removed from a mounting and/or examined under a different light source.
However, in order to standardize the examination environment, the jewelry
industry has prescribed the use of “special” lighting. The prescribed light
sources were used in this examination. This includes both a diamondlite (north
daylight equivalent) and a fiber optic probe (monochromatic light source).
Additionally, when appropriate, long/short wave (UV) fluorescence was used to aid
in the authentication of diamonds and colored stones.
Metal quality of finished jewelry cannot be conclusively established by the
gemologist appraiser. Common industry practice suggests that metals be
identified by acid testing, test needles and rub stones as well as confirming the
authenticity of identification marks. The designer and/or manufacturer of a
given piece of jewelry may be identified by extensive research and the
authentication of trademarks, hallmarks, and maker’s marks.
The gemologist appraiser was able to ascertain material, style, size, and quality
of workmanship from his personal examination, referencing photographs, and
personal research.
Each work has been measured. All measurements are approximate. Measurements are
given to the nearest mm/gram. Unless otherwise stated, the weights of all
mounted gemstones are estimated by using accepted gemological formulas, and
should be within the accepted limitations of that method. Although state-of-the-
art gemological equipment is used, the actual weight of gemstones when unmounted
may be different from the estimated wight by formula (This is also considered an
Extraordinary Assumptions and Limiting Condition).
No jewelry condition report was supplied. The gemmologist appraiser assigned
each piece a general condition comment - good, fair, or poor - and a
qualification when appropriate. “Condition” refers to what is considered
generally acceptable, with ordinary wear and tear for its type, unless otherwise
noted.
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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 9)
PHOTOGRAPHY: APPRAISER’S NAME, AAA took 35mm photographs of the works. No
modifications or alterations were made to the appraisers’ photographs.
M ETHOD OF RESEARCH: Research was conducted in the offices of COMPANY NAME. The
office is equipped with an extensive library of more than 10,000 research books
and auction catalogues. Additional research was conducted on the internet using
standard search engines as well as pricing data bases to which COMPANY NAME
subscribes (including ArtNet, ArtFact, ArtPrice, Prices for Antiques, AskArt,
Gordonsart, Invaluable, and Antiqueclockspriceguide). Appropriate galleries and
auction houses were contacted for information when necessary. Minimal outside
library/museum research was conducted for this specific appraisal. Specific
sources and internet sites are listed at the end of the report.
TYPE OF APPRAISAL: This report is considered to be a “current” summary appraisal
report according to the rules of 2008-2009 USPAP (Uniform Standard of
Professional Appraisal Practice).
Comparable sales history is not included in the report. However comparable sale
information is kept in the client’s file in the offices of COMPANY NAME and is
available for the client or the insurance company (with the client’s permission)
to examine upon request.
This information will be kept by COMPANY NAME for a minimal period of five (5)
years after the date of issue or two (2) years after final disposition of any
judicial proceedings involving the appraisers, whichever period expires last.
APPROACH TO VALUE: The appraisers named on the cover page of this document has
employed the "market comparison" approach to arrive at the appraised "retail
replacement value". The "income" approach and the "cost" approach are not
applicable to this particular appraisal.
M ARKET EXAM INED: The "market comparison" approach analyzes recent sales of
comparable articles at major international and regional fine art auctions,
private and public sales, shows and exhibitions, as well as prevailing prices at
retail shops and galleries where the article may normally be traded. For this
particular appraisal, the appraisers primarily examined the international fine
art gallery and auction markets. Adjustments are then made for each article
which consider age, condition, rarity, artistic merit, technical workmanship,
current trends and availability of an article as compared to such recent sales.
TYPE OF VALUE USED: Retail replacement value.
DEFINITION OF VALUE: Appraised "retail replacement value" is defined as the highest
amount in terms of US dollars that would be required to replace a property with
another of similar age, quality, origin, appearance, provenance, and condition
within a reasonable length of time in an appropriate and relevant market. When
applicable, sales and/or import tax, commissions and/or premiums are included in
this amount.
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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 10)
SOURCE FO R DEFINITION OF RETAIL REPLACEM ENT VALUE: New York University Appraisal
Studies Program, Fall 2006.
USPAP COM PLIANCY: The report was written by APPRAISER’S NAME, AAA whose USPAP
qualification with the AAA is valid until 2009.
This appraisal report follows the guidelines of USPAP in that the report provides
all of the necessary information/analysis to satisfy the “current” report
development requirements as defined in Standard 7 (Personal Property,
Development) and the writing requirements of a Summary Appraisal as defined in
Standard 8 (Personal Property, Reporting).
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EXPLANATION OF SILVER, GOLD, SILVERFINE ART BREAKABLE (SFAB), AND SILVER FLATWARE
Silver - Only articles marked with a sterling standard (925/1000 or greater), the word
sterling, or have been scientifically proven to be sterling, will be described as
sterling silver. Articles with some other silver standard (Continental - 800/1000 or
greater, coin, seven metal), or have proven to be silver of a certain standard, will be
identified accordingly.
Gold - Only articles marked 10K, 14K, 18K, 24K, or have been scientifically proven to be
gold, will be described and identified accordingly as gold.
All weights have been determined by use of Troy or pennyweight scales.
Current spot silver and gold prices on the New York market are a factor in the
determination of appraised value of contemporary silver. Adjustments are then made for
each article after considering age, condition, rarity, artistic merit, technical
workmanship, current trends, and availability of an article.
Gold items with a fine art, antique, or rare value are indicated in the report as
"(GOLD)". This indication is directly under the article number.
(SFAB) - Silver or gold items with breakable parts are known as Silver Fine Art
Breakables and are indicated in the report as "(SFAB)". This indication is directly
under the article number.
Antique silver - Items of antique silver, silverplate, and gold are included in the
Schedule of Fine Art rather than in a Schedule of Contemporary Silver, Silverplate, and
Gold. Antique silver, silverplate, and gold items include such items of rare and
handmade nature. These items are not usually readily available on the primary market.
Flatware qualifications - Values used in flatware appraisals are based on rarity of
pattern and collectibility of the item. Certain patterns increase in value after they
have been discontinued because of their rarity, however others may decrease, depending
on current styles and tastes. Certain articles have become obsolete in the 21 centuryst
(i.e., sardine forks, ice cream forks), however, are highly collectible due to their
limited production and “quirky functions. As such, these pieces have a great collectable
value over standard pieces. The following explains the availability of manufactured
silver:
Active pattern: Active pattern readily available and easily obtainable on the retail
market.
Inactive/discontinued pattern: Pattern not currently in production, however can be
produced with a special order.
Obsolete pattern: Pattern which is no longer available from the manufacturer, the dies
have been destroyed, or the manufacturer no longer in business.
Closed pattern: Limited edition pattern and is no longer available.
Unknown pattern: Appraisers unable to ascertain availability of pattern; owner of dies
unknown.
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EXPLANATION OF FINE JEWELRYDEFINITION OF TERMS
DIAMONDS AND COLORED STONESAll articles of fine jewelry with major stones are examined by a Graduate Gemmologist and
will be described and identified accordingly. Articles of vintage and/or collectible
jewelry are examined by an antiques appraiser and valued as antiques rather than their
value in materials. Diamond and colored stones are valued based on the following
criteria when significant:
CARATCarat is the measure of weight, not the size of the stone. It is a small unit of
measure equal to 200 milligrams. The word "carat" is derived from “carob”, the tree
whose seeds became the standard for measuring diamonds. A 1 carat diamond is made up
of 100 units called "points". Therefore, a 50 point diamond is a ½ carat or .50 carat.
(“Carat” in reference to the weight of a stone should not be confused with "karat" in
reference to gold.)
COLORDiamonds are assigned a color grade based upon the amount of body color exhibited when
compared to a set of Master Color Diamonds which have been color-graded and registered
by the GIA Gem Trade Laboratory. In most cases, diamonds are graded using a
standardized light source equivalent to daylight.
The color grading scale is as follows:
D E F * G H I J * K L M * N O P Q R * S T U V X Y Z *Z+ COLORLESS NEAR FAINT VERY LIGHT YELLOW LIGHT YELLOW FANCY COLORLESS YELLOW YELLOW
CLARITYClarity is an indication of a diamond's purity. Clarity is determined by the overall
number, size, and location of inclusions (flaws). The U.S. Federal Trade Commission
established the jewelry industry's standards for diamond clarity based on 10-power
magnification. As such, the appraiser assigned diamonds a clarity grade based upon
examination under a 10x binocular microscope equipped with dark field illumination.
The clarity grading scale is as follows:
FLAWLESS I.F. VVS¹¹ VVS² VS¹ VS² SI¹ SI² I¹ I² I³
INTERNALLYFLAWLESS
VERY VERY SLIGHTLYINCLUDED
VERY SLIGHTLYINCLUDED
SLIGHTLYINCLUDED
IMPERFECT EYE VISIBLEINCLUSIONS
CUTCut refers both to the shape of a diamond and the precise arrangement of its facets.
The most popular cuts are Round (AKA Brilliant), Pear, Marquise, Emerald, Oval,
Princess, and Heart.
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EXPLANATION OF FINE JEWELRY - DEFINITION OF TERMS(Continued from Page 13)
PEARLSAll articles of fine jewelry with pearls are examined by a Graduate Gemmologist and will
be described and identified accordingly. Articles of vintage and/or collectible jewelry
are examined by an antiques appraiser and valued as antiques rather than their value in
materials. Pearls are valued based on the following criteria when significant:
SHAPERound - well-matched, globular (most valuable)
Half-round - flat bottoms
Baroque - irregular
Fresh water - irregular
BODY COLORThere are six main body colors found in pearls: white, cream, pink, golden, black,
and green. Pearls are also found in blended color variations such as lavender,
silver, and gray. Pearls are ideally graded in natural daylight using a white
background. If natural light is unavailable, fluorescent light is the next best
lighting. Color evaluation of pearls is controversial as a value factor. While color
is significant, it is not granted over-importance in the final estimation of value.
The evaluation of color is more difficult and rather subjective, as there are
subtleties of market preference based on attitudes of specific clients and regional
preferences.
LUSTERPearls are rated according to the fineness of their luster. Luster is determined by
the intensity of the reflection found on the surface of a pearl which results from
light striking the surface. Luster is seen on a smooth surface where no ridges are
present to reflect the light in many directions. The more mirrorlike the surface
reflection of a pearl, the better the quality. In evaluating pearls, the appraiser
assigned a luster rating of very good, good, and fair.
MATCHMatch is an indication of continuity and quality in a strand of pearls. In a well-
matched strand, the pearls are similar in shape and give the viewer the overall
impression of evenness. A well-matched strand is given a higher value consideration
than one of mixed shapes. In evaluating a stand of pearls, the appraiser assigned a
match rating of very good, good, and fair.
BLEMISHESBlemishes, or spotting, are the wrinkles, cracks, gaps, bumps, or dull spots on the
surface skin of pearls. The most important criterion for assessing the value of a
pearl is the perfection of the skin, i.e., the lack of blemishes. As such, the
appraiser has indicated any apparent blemishes.
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15
EXPLANATION OF FINE ART BREAKABLE (FAB)AND BREAKABLE PERSONAL PROPERTY (BPP)
Fine Art Breakable and Breakable Personal Property items are indicated in
the report as "(FAB)" or "(BPP)" directly under the article number.
Fine Art Breakable (FAB) items include all items of glass, pottery, china,
terra cotta, and marble that have a fine art, antique, or collectible
nature.
Breakable Personal Property (BPP) items include all items of glass, pottery,
china, terra cotta, and marble residential contents that do not have a fine
art, antique, or collectible nature.
Mirrors are included as Fine Art Breakable (FAB) items if the plate is of
equal or more value than the frame or if a replaced plate would affect the
total value of the piece.
Vintage wine is not considered a Fine Art Breakable (FAB) unless otherwise
indicated. Wine will normally be considered as a Breakable Personal
Property (BPP) item except in the case of antique wine.
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16
EXPLANATION OF AUTHORSHIP AND ATTRIBUTION
GLOSSARYA George III mahogany linen press
Late 18th century
This heading and date indicate that in the appraisers’ qualified opinion the piece is
essentially of the period. Later restorations and alterations are indicated and
considered in the valuation.
A George III-style mahogany linen press
19th century
The heading and date with the word "style" included indicates that in the appraisers’
qualified opinion the piece is an intentional copy of an earlier design. Later
restorations and alterations are indicated and considered in the valuation.
FURNITURE PERIODS AND STYLES
Dates British Monarch U.K. Period French Period
1649 - 1660 Commonwealth Cromwellian Louis XIV (1643 - 1715)
1660 - 1685 Charles II Restoration
1685 - 1689 James II Restoration
1689 - 1694 William & Mary William & Mary
1694 - 1702 William III William III
1702 - 1714 Anne Queen Anne
1714 - 1727 George I Early Georgian Regence (1715 - 1723)
1727 - 1760 George II Early Georgian Louis XV (1723 - 1774)
1760 - 1811 George III Late Georgian Louis XVI (1774 - 1793)
Directoire (1793 - 1799)
Empire (1799 - 1815)
1812 - 1820 George IV Regency Restauration (1815 - 1830)
1837 - 1901 Victoria Victorian Louis Phillippe
2 Empire (1848 - 1870)nd
3 Republic (1871 - 1940)rd
1901 - 1910 Edward VII Edwardian Art Nouveau (1890 - 1920)
SIGNATURE
When a work is signed/dated/inscribed by the hand of the artist/craftsman, the appraiser
will state "Signed/stamped/incised..." exactly as written by the particular
artist/craftsman in the specific composition. This means that the appraiser believes the
work to be by the "signed" artist/craftsman.
When a signature/stamp/seal exists on a work, but the work does not appear to be by the
hand of such signed artist, the appraiser will indicate that the work "Bears
signature/stamp of...". This means that the appraiser does not believe the work to be by
the "signed" artist/craftsman.
(Continued on Page 17)
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EXPLANATION OF AUTHORSHIP AND ATTRIBUTION(Continued from Page 16)
AUTHORSHIP GLOSSARY
TITLE - If a generally accepted title for the work exists, that title is given. If the
work is untitled or the title is unknown, a descriptive title may be assigned and is
indicated with an asterisk (*).
When provenance is unknown and a search of reliable sources fails to render information
concerning a particular artist or work involved, a value determination is based on
artistic merit and market conditions.
AUTHORSHIP - When a work is unsigned but generally accepted in the scholarly community
to be by a particular artist, that artist's name will be indicated as "Ascribed to...".
This is the highest category of authenticity.
When a question of doubt concerning authorship prevails, the authorship will be
indicated as "Attributed to..." a particular artist or a school.
When a signature exists on a work, but the work does not appear to be by the hand of
such signed artists, the appraiser will indicate that the work "Bears signature of...".
This means that the appraiser does not believe the work to be by the "signed" artist.
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GLOSSARY OF TERMS APPLICABLE TO THIS REPORT
abstraction - art which makes no direct, immediate discernible reference to
recognizable objects. In abstract art, the formal arrangement of colors and
forms is independent of, and more important than, the subject matter.
buyer's premium - a percentage of the bid ("hammer") price at an auction;
usually 5 - 20%.
canvas size - the actual size of a work on canvas where the edges are visible.
catalogue raisonné - a scholarly catalogue which should include all the known
works by an artist at the time of compilation; includes essential information
by which works are identified; the definitive reference book.
cradled panel - a restoration method used to support the back of a wood panel;
usually constructed in a series of horizontal and vertical wood pieces and
applied to the back of an old panel; keeps wood from serious warping, allowing
for natural expansion and contraction.
craquelure - the result of the uneven movements of the canvas caused by the
natural shrinking of the medium on aging; usually appears on the surface in a
"spider-web" like series of cracks. Surface can be stabilized by relining the
canvas and restoring the cracks.
estimate (est.) - the pre sale dollar amount suggested by an auction house at
which an object is expected to fetch at auction
expressionistic - a style of art characterized by distortions of line, shape,
and color based on an emotional reaction of the artist
gouache - an opaque watercolor. The effects achieved are closer to those of
oil paint than watercolor. A disadvantage of gouache is that it lightens as
it dries
hammer price - the actual "bid" price at an auction; does not include the
premium
impasto - paint applied with the consistency of thick paste
impressionistic - a style of art characterized by discontinuous brushwork or
an analytical approach to light on an object where strokes of color blend in
the eye to form the object
o/c - oil on canvas
patinated - a finish often applied to bronzes to add color; usually in green,
brown, black, or gold
reserve - the agreed upon minimal amount at which an item can be sold at
auction
(Continued on Page 19)
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GLOSSARY OF TERM S(Continued from Page 18)
seller's premium - a percentage of the bid ("hammer") price at an auction;
usually 5 - 15%. It is usually more negotiable than the buyer's premium.
surmoulage - a cast from a cast
TAM - Tax Advisory Memorandum
terra cotta - a medium used in creating sculptures. It is fired clay, modeled
or moulded, and baked until it is very hard. Terra cotta has been used since
ancient times for pottery and sculpture, and as a building material. It may
be coated with a glaze of molten glass, painted, or left untreated.
watermark - design left in the paper by the paper manufacturer; seen when held
against the light; used to trace the origin of the paper; special markings for
an artist or publisher may incorporate a signature or a device; can be used to
detect fakes -- although it can be faked.
w/c - watercolor
work size - the actual size of a work on board or paper where the edges are
visible
work size (sight) - the visual size of a work on board, paper, or canvas,
usually measured in a frame and not knowing the extend of the margins/edges
under the frame
unsold - an artwork that did not sell at auction. The most common reason items
are unsold is because the item failed to reach its reserve (AKA “buy-in” or
“bought-in”). Other reasons an item is unsold could be that the item was
withdrawn based on ownership or authenticity, or that the consigner changed
their minds.
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20
DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS
This certificate of appraisal is given, subject to the terms and conditions
hereinafter set forth, all of which are a part hereof unless expressly set aside in
writing either on the pages of this certificate or by writing attached to the
certificate signed by all parties concerned.
This appraisal consists of XX pages and must be presented in its entirety to be
valid.
This appraisal is prepared solely for insurance purposes using the comparative
market approach to arrive at the retail replacement values as of June 1, 2008.
It is to be used by Dr. Diane Pill and Mr. Justin Case and solely by them for
insurance purposes. This report can be used by an insurance company / agent /
broker / underwriter / adjustor as designated by Dr. Pill and Mr. Case .
The client shall indemnify, defend, and hold us harmless from and against any
actions, claims, liabilities or expenses incurred as a result of claims based on or
arising from the appraisal, by third parties unrelated to the immediate purpose of
this appraisal.
Unless otherwise stated herein, this certificate is based only on the readily
apparent identity of the items appraised, and no further opinion nor guarantee of
authenticity, genuineness, attribution, or authorship is made. However, in
appraising the subject articles, the appraisers found no reason to question the
authenticity of the articles (See also Scope of Work).
Some descriptive information pertaining to the work was supplied by the client,
through standard reference material, and the internet. No reported scientific
and/or laboratory testing has been performed on any articles.
The appraised value is based on the whole ownership and possessory interest
undiminished by any liens, fractional interests or any other form of encumbrance or
alienation.
This certificate is made at the request of the party named for their use. It is not
an indication or certificate of title ownership. The identification of the interest
of the requesting party is simply that represented to the appraisers by such party
and no inquiry or investigation has been made nor is any opinion given as to the
truth of such representation.
The values expressed herein is based on the appraisers’ best judgment and opinion
and are not representations or warranties that the items will realize these values
if offered for sale at an auction or otherwise. The values expressed are based on
current information on the assigned effective date stated on the cover page of this
report. No opinion is hereby expressed as to any future value, nor unless otherwise
stated, as to any past value.
(Continued on Page 21)
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21
DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS(Continued from Page 20)
The appraisers considered the highest and best use of the appraised articles with
respect to the most appropriate, common, and legal marketplace given the purpose of
the appraisal.
The appraisers have no past interest, no present interest, nor any contemplated
future financial interest in the appraised property. The appraisers do not have any
personal interest or bias with respect to the parties involved. This appraisal was
done objectively and in accordance with the 2008-2009 Uniform Standards of
Professional Appraisal Practice and the Appraisers Association of America. Further,
the appraisers have no other interest which might tend to prevent making a fair and
unbiased appraisal.
This appraisal was researched and prepared by the appraisers named on the cover page
of this report. Supplemental research was supplied by office assistants and interns
at APPRAISAL COMPANY NAME, particularly ----- ----- and ------ ----. No other
person supplied significant assistance in preparation of this report.
Some information regarding provenance was limited to hearsay. Minimal primary
information regarding exhibition and literary history of the articles were made
available by the client to the appraisers. Any factual and/or hearsay information
provided by the client is assumed to be correct, however, the appraisers are not
responsible for any errors or misrepresentations on the part of Dr. Pill or Mr.
Case.
The appraisers did not personally examine any of the comparable sales and/or
offerings with regard to these particular works. The appraisers are relying on
information made available through price databases and gallery inventories regarding
authenticity, condition, and sales information concerning these works.
Consulting sources are listed in the back of the report. Information furnished by
consulting sources is assumed to be reliable, but is not guaranteed by these
appraisers or their firm.
The appraisers are not required to give testimony, be present in any court of law,
or appear before any commission or board by reason of this appraisal, unless prior
arrangements have been made with the appraisers. Should this report be challenged
in anyway, not limited to litigation, it is understood that the appraisers are
prepared to defend their appraisal, if required. Courtroom testimony, mediation
proceedings, and the necessary preparation are considered to be separate assignments
and will be billed at our then current normal hourly rate plus expenses as required.
Possession of this report, or copy thereof, does not include the right of
publication without the written consent of the appraisers and their firm. This
report in its entirety, or any part thereof, including the identity of the
appraisers or their firm, shall not be made public through advertising, public
relations, news releases, sales, or other distributive or information media without
the written consent of the appraisers and their firm.
(Continued on Page 22)
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22
DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS(Continued from Page 21)
Copies of this appraisal and notes pertaining to the appraisal, written and
electronic, will be kept in the offices of COMPANY NAME for a minimal period of five
(5) years after the date of issue or two (2) years after final disposition of any
judicial proceedings involving the appraisers, whichever period expires last.
APPRAISAL COMPANY NAME will make every effort to store client records in a safe and
secure environment. However the firm is not responsible for acts of war, terrorism,
or other such unexpected catastrophes which may affect the safekeeping of this
report.
All matters treating the duties, responsibilities, and liabilities of the appraisers
are in accord with the Valuation Standards and Professional Practices as outlined
by the Appraisal Foundation in the 2008-2009 Uniform Standards of Professional
Appraisal Practice and the Principles of Practice and the Code of Ethics of the
Appraisers Association of America.
© 2009 APPRAISAL COMPANY NAME. All Rights Reserved. None of the contents of this appraisal report may be reproduced, stored in aretrieval system or transmitted in any form or by any mean (electronic, mechanic, photocopying, recording or otherwise) without the prior writtenpermission of APPRAISAL COMPANY NAME and the appraisers' signature.
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23
MARKET ANALYSIS
Given that the art and antique markets are always volatile markets, an overall market
valuation forecast cannot be established. Particularly with the uncertain political
and economic situation of the world after September 11, 2001, a market analysis is
difficult to prepare in these uncertain times.
However, based on an analysis of the market since 2000 and a presumption of a future
relatively stable growth, it could be concluded that certain areas have and will
appreciate at a greater rate than others. Until this year, American art has been one
of the areas that has been doing quite well on the primary and secondary markets.
However, given the current state of the American economy, we have been currently
experiencing a dip in the market. This is felt throughout the art market, however,
the American market is hit the hardest as most patrons are Americans and cannot look
to the global market for buyers as relied upon by the
Modern and Contemporary markets.
ArtPrice has compiled indicators for the auction sales
of Benton. According to Figure 1, works by Benton
appear to be on a decline. However, because of a
weakened economy, collectors are reluctant to sell
their works in this market. Hence no fabulous works
have appeared to teeter the trend. According to this
chart, works by Benton are down by 57%. Speaking with
galleries, such as Hirschl and Adler or Spanierman,
they dispute this data, saying that there is good art
available, but one must search for it in this
uncertain economy.
Internationally, it has been a different story. The Impressionist and Modern Art
Evening Sale of June 24, 2008 at Christie’s generated £144 million ($284 million), the
largest sales volume ever posted by a European auction.
The following day, Sotheby's took £102 million,
exceeding its aggregate high estimates by seven
million. In New York, during the May sales, Christie’s
and Sotheby’s achieved proceeds of $1.2 billion. Works
by Monet, Bacon, and Freud sold in the past few months
have been snapped up as trophy purchases by Tania
Buckrell Pos or the Russian billionaire Roman
Abramovich, serving as barometers for the whole market,
as did the works of Renoir and Van Gogh during the 1990
speculative bubble. Once again, the high-profile
Christie’s and Sotheby’s sales, which represent just
1/1000 of global transactions seem to be setting the
tone for the broader market. The following chart
represents activity in French Impressionism relating to your Monet, Renoir, Fantin
Latour, and Maillol. Note that we are at the levels of the height of the market in
1990.
(Continued on Page 24)
Figure 1 - TH Benton Activity 1998-2008
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http://web.artprice.com1
24
M ARKET ANALYSIS
(Continued from Page 23)
That said, the confidence indicator for players in the art market has been falling for
over a month. Having peaked at +31 points at the end of May following the excellent
results from the May New York sales, this indicator has
gradually turned down…haunted by the ghost of an
unprecedented global economic recession. With oil prices
surpassing $140/bbl, the cost of the subprime crisis
continues to rise, real estate values have dropped
practically everywhere in the world, the financial markets
continue their relentless correction, inflation is becoming
galloping, growth forecasts are looking increasingly
pessimistic…Yet for all that, the art market is still
showing signs of resistance, defying the other poorer
performing sectors of the global economy. In such an
environment, the million-pound proceeds recorded in the
highly prestigious Christie's and Sotheby's London sales look nothing short of
miraculous.1
Aside form the artwork, much of your furniture is finely made custom furniture or
craft items, which commands high prices in the primary market due to its craftsmanship
and uniqueness. These pieces rarely retain their value on the secondary market,
particularly in one’s lifetime. However, these works will undoubtedly be appreciated
in the generations to come.
Given your specific collection and based on general and specific market volatilities,
these appraisers recommend that a general appraisal update should be conducted in at
least two years to adequately protect yourself for insurance purposes.
Please note that the appraisers do not guarantee any prices or predictions for values
in the future.
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25
TOTAL VALUE
SCHEDULE OF FINE AND ANTIQUE SILVER $ -,---.00
SCHEDULE OF FINE AND DECORATIVE ART $ ---,---.00
SCHEDULE OF FINE ART BREAKABLE (FAB) $ ---,---.00
GRAND TOTAL $ -,---,---.00
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26
VALUE BREAKDOWN - BY LOCATION
SCHEDULE OF FINE AND ANTIQUE SILVER $ -,000.00
Total $ -,000.00
SCHEDULE OF FINE AND DECORATIVE ART
Entry Foyer $ ---,000.00
Entrance Sitting Room ---,000.00
Library Powder Room -,000.00
Living Room ---,000.00
Dining Room ---,000.00
Storage / Dining Room --,000.00
Television Room -,000.00
Pantry Closet --,000.00
Kitchen and Hall --,000.00
Loose Posters --,000.00
Total $ -,---,---.00
SCHEDULE OF FINE ART BREAKABLE (FAB)
Entry Foyer $ ---,000.00
Entrance Sitting Room ---,000.00
Library Powder Room -,000.00
Living Room ---,000.00
Dining Room ---,000.00
Storage / Dining Room --,000.00
Television Room -,000.00
Pantry Closet --,000.00
Kitchen and Hall --,000.00
Loose Posters --,000.00
Total $ -,---,---.00
Total $ ---,---.00
GRAND TOTAL $ 000.00
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27
SCHEDULE OF FINE ART
FINE ART SILVER
ArticleNumber
AppraisedValue
Description
1. $ 000.00
Piece
An American sterling silver footed compote of modern form, the
flared circular top raised on a short ringed stem below a
spreading circular foot
Tiffany and Company, New York
After 1951
Marked Tiffany and Company Makers Sterling Silver 23356M
Height: 4¼ inches Diameter at top: 12½ inches
Weight: 47 troy ounces
Condition: Good.
Note: Discontinued.
Photo 1
2. $ 000.00
Piece
An American sterling silver two (2)-handled presentation tray of
oval shape having a scrolled “C” curve border continuing to form
openwork handles and slightly scalloped border dropping to a
recessed bowl; commemorating the service of -------------, signed
by six (6) fellow directors, each a prominent member of the world
of finance and business, incised ----------
Hampton Court
Pattern 666
Reed & Barton, Taunton, Massachusetts
Circa 2000
Marked on verso Hampton Court, Reed & Barton, Sterling X 666
Length of tray: 24½ inches Width of tray: 17 inches
Condition: Good.
Note: Presently located in the Living Room.
Photo 2
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FINE ART SILVER
28
3. $ 000.00
Part service
A partial service of American sterling silver flatware, each piece
of a simple form with plain tapered handles and rounded terminal
Hannah Hull
Tuttle, Boston
1927 - 1974
Comprising: Per piece
Twelve (12) teaspoons $ 118.00
Sixteen (16) salad forks 135.50
Four ( 4) luncheon forks 135.00
One ( 1) gravy ladle 92.00
One ( 1) pierced cranberry/tomato server 92.00
One ( 1) pie server 92.00
One ( 1) serving spoon 92.00
A total of thirty-six (36) pieces
Condition: Good.
Notes: Pattern was bought from Tuttle by Wallace. Current as a
Wallace pattern. Earlier Tuttle pieces more valuable than
Wallace pieces.
Photo 3
4. $ 000.00
Piece
An Italian sterling silver bread knife with an open twist sterling
handle and serrated stainless steel blade
Padova by Elsa Peretti
Distributed by Tiffany and Company, New York
After 1994
Marked Peretti Tiffany & Co. Sterling Italy 1994
Overall length: 11 inches Length of blade: 7 inches
Length of handle: 4 inches
Condition: Good.
Photo 4
??
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29
ENTRANCE AND CENTER HALL GALLERY
ArticleNumber
AppraisedValue
Description
5. $ 000.00
Piece
The ----
A mixed media bronze sculpture depiction of a seated woman wrapped
in a blue cloth, having iridescent eyes, wearing stilettos and
holding a round stone with her lap
Polychromed bronze and painted fabric
K------ L. ------ (American, born 1963)
No visible signature
Height: 22¼ inches Width: 10½ inches Depth: 12 inches
Provenance: Purchased directly from the artist Sale - 1994
Condition: Good.
Photo 5
6. $ 000.00
Piece
An American handcrafted wood abstracted functional standing floor
clock, the clock face section in the form of a natural-colored
blossom with gilded hour and minute hands, raised on a flared
stand of polychromed sections
Prime Time
Polychromed wood (Jelutong)
----- ----- (American, born 1952)
Executed 1996
Signed ----- and dated 96 near bottom
Work size: 93½ x 40 x 21 inches
Condition: Good.
Photo 6
7.
(FAB)
$ 000.00
Piece
Pink Basket with Wrap
A free-blown glass vase decorated with yellow, pink and aubergine
glass threads
--- --- ------ (American, born 1946)
Executed 1998
Number ---.--.--
Script signed ------ and dated 1998
Height: 10 inches Diameter 8 inches
20 century period frameth
Literature: History unknown
Condition: Good.
Photo 7
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ENTRANCE AND CENTER HALL GALLERY
30
8. $ 000.00
Piece
A large custom-ordered tufted wool area rug of rectangular shape,
the striped field worked in various alternating colors of orange,
olive, purple, and blue, some with dentil-form design, within an
orange border
Syncopation/melange area rug with Quantum border
Late 20 centuryth
15 feet x 6 feet, 11 inches (180 inches x 83 inches)
Provenance: ---- Carpet, -----, New Jersey
Sale - February 3, 1995
Condition: Good.
Photo
0
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http://encyclopediaofarkansas.net/encyclopedia/entry-detail.aspx?entryI2
D=2333
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HALL GALLERY
ArticleNumber
AppraisedValue
Description
9. $000.00
Piece
--------
A genre scene depicting two (2) women in a canoe on a river,
surrounded by cliffs at left and distance and trees on sandy
shore at right
Egg tempera on masonite
Thomas Hart Benton (American, 1889 - 1975)
Executed 1969
Signed Benton and dated ‘69 at lower left
Work size: 16 x 20 inches (sight)
Reported size: 18 x 23 inches
Framed size: 26 x 31 inches
20 century distressed gilt cove-moulded carved wood frameth
Provenance:
Rita Benton (artist’s wife), Kansas City
Christie’s, New York, November --, 19--, lot 1–
Unknown owner
---- Gallery, New York Sale - April --, 200-
Literature:
Matthew Biagell, Thomas Hart Benton, New York, 1973, number --
Condition: Good.
Notes: ---- Gallery label indicates it measures 18 x 23 inches.
Starting about 1965, Benton made annual trips to float the ----
River with a group of friends from Kansas City. Sometimes he
fished or swam, but invariably he carried a sketch pad with him.
He painted some of his best late works during this period,
including ------- .2
Highest price paid at auction for a Benton painting:
05/24/06 - Sotheby’S, NY, lot 125, Keith Farm, Chilmark, 1955,
o/board, 21 x 29, est. $350,000-550,000; sold $1,808,000
Auction comparables:
05/24/06 - Sotheby’S, NY, lot 125, Keith Farm, Chilmark, 1955,
o/board, 21 x 29, est. $350,000-550,000; sold $1,808,000
11/30/05 - Sotheby’s, NY, lot 27, Jon Boat - Buffalo River,
o/panel, 12 x 10, est. $100,000-150,000; sold $340,800
05/22/03 - Christie’s, NY, lot 80, Shooting the Rapids, 1973, o/c,
20 x 24, est. $200,000-300,000; sold $377,100
Photo 9
??
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http://www.si.edu/Encyclopedia_SI/nmah/guarneri.htm3
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SCHEDULE OF MUSICAL INSTRUMENTS
ArticleNumber
AppraisedValue
Description
10. $ 000.00
Piece
A Continental handcarved violin; together with a later bow and
leather case
Bears label that is typed Joseph Guarnerius fecit Cremonae anno
1710
19 centuryth
Overall length: 23 3/8 inches
Condition: Good.
Notes: Stradivari and Guarnerius are ranked as the greatest of
violin makers, and some fine violinists prefer the instruments of
Joseph Guarnerius del Gesu to those of Stradivari. The most
illustrious member of this famous family of violin makers was
Bartolomeo Giuseppe Guarneri (Cremona, Italy, 1698 - 1744), the
fifth and last member of the family, grandson of Andrea, son of
Giuseppe Giovanni Battista. He is more familiarly known as
Joseph Guarnerius del Gesu. Guarnerius is the Latin form of the
family name and Joseph the Hebrew form of Giuseppe. The addition
of "del Gesu" to the name and the Greek abbreviation for Jesus
(IHS) beneath a cross on the labels indicate veneration for the
Holy Name. The outline of his violins, with slight
modifications, is founded on instruments of Antonio Stradivari.
Modeling of the back and table are noticeably flattened,
seemingly inspired by Maggini. The F holes are of Stradivari
form but are usually elongated, more open, and less refined. The
carefully applied oil varnish is soft in quality and of light
texture, with the color varying between pale orange and orange-
brown with, occasionally, a reddish tint. The length of the body
is usually 13 7/8", sometimes 1/16" less. The estimate of his
total production is not more than 250 violins; there is no
positive evidence that he made instruments in any other form,
although some violas and at least one violoncello are attributed
to him. Approximately 150 violins are known to exist. Cremonae3
violins began to be copies in the 1840s by the thousands and sold
throughout the world. Due to the size, age, and quality of this
piece, it is probably a 19 century copy.th
Photo
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SOURCES
THE FOLLOW ING REFERENCE BOOKS AND PRICE GUIDES W ERE CONSULTED:
_____. American and European auction catalogues, 1987 - 2008.
_____. Annual Guide to Galleries, Museums, Artists. New York: Art in America,
1995 - 2008.
_____. Guide to Exhibited Artists: Craftsman. Oxford, England: Clio Press,
1985.
_____. Joichi Hoshi, Catalogue of All Tree Woodblock Prints 1970 - 1979.
_____. Uniform Standards of Professional Appraisal Practice and Advisory
Opinions. 2008 - 2009 Edition. Washington, D.C.: Appraisal Standards Board,
2007.
Adams, Henry. Thomas Hart Benton. New York: Knopf, 1989.
Albertu, Rafael. Picasso en Avignon, Editions Cercle d’Art, Paris, 1971.
Alden, Aimee Neff. The Collector's Encyclopedia of Early Noritake. Paducah,
Kentucky: Collectors Books, 1997.
Barry, John W. American Indian Pottery. Florence, Alabama: Books Americana,
1984.
Biagell, Matthew. Thomas Hart Benton, New York, 1973.
Brewer, Robin. Noritake Dinnerware: Identification Made Easy. Atglen,
Pennsylvania: Schiffer Publishing Ltd., 1999.
Canadian Eskimo Arts Council. Sculpture/Inuit. Toronto: University of Toronto
Press, 1971.
Carmichael, Suzanne. The Travelers Guide to American Crafts West of the
Mississippi. New York: Dutton, 1990.
Carpenter, Charles H., Jr. with Mary Grace Carpenter. Tiffany Silver. San
Francisco: Alan Wofsky Fine Arts, 1997.
Constable, W. G., ed. Summary of European Paintings, Boston, 1955.
Cunningham, C. C. “From Gainsborough to Renoir: Boston Exhibits its New Gift of
the J.C. Edwards Collection”, Art News, Number 38, December 9, 1939.
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THE FOLLOW ING GALLERIES, EXPERTS, AUCTION HOUSES, AND RETAIL SHOPS,
W ERE SPECIFICALLY CONSULTED:
Albemarle Gallery, London
Arden Gallery, Boston
Bonhams & Butterfield, San Francisco
Christie’s, New York and London
Doyle, New York
Elliot / Brown Gallery, Seattle
Foster / White Gallery, Seattle
Gallery Old Town, San Diego
Godel Fine Art, New York
Hirschl & Adler, New York
Massol, Paris
Monroe Gallery of Photography, Santa Fe
Samuel T. Freeman and Company, Philadelphia
Scriptum, Berkeley, California
Skinner, Inc., Bolton, Massachusetts
Sloan’s, Washington, D.C.
Sotheby’s, New York and London
Spanierman Galleries, New York
Swann Galleries, New York
Tiffany and Company, New York
Vose Galleries, Boston
THE FOLLOW ING INTERNET SITES WERE SPECIFICALLY CONSULTED:
www.afterimage.com
www.artfact.com
www.artnet.com
www.artprice.com
www.askart.com
www.castlefinearts.com
www.christofle.com
www.ebay.com
www.gordonsart.com
www.idburyprints.com
www.michaelcfina.com
www.replacements.com
www.silversuperstore.com
www.sothebys.com
www.upscalegallery.com
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APPRAISERS’ CERTIFICATION
COMPANY NAME is a registered firm of appraisers qualified to appraise residential
contents, fine art, and antiques. In 199*-200*, APPRAISER’s NAME, AAA, examined and
photographed the majority of the articles listed herein. APPRAISER’s NAME appraised all
items of Fine Art and reviewed all appraised values of all items for insurance purposes.
Her examination and appraisal of Fine Art items was assisted by APPRAISER 2. APPRAISER
3 and APPRAISER 4 also examined and appraised items of antique furniture, silver, rugs,
and general contents. APPRAISER 5 assisted in the examination of general contents and
insurance appraisal in 2005. Periodically since 2000, APPRAISER’s NAME visited the MR.
ZEN’S home to examine new acquisitions, appraise for insurance purposes, and review the
condition of various items.
Upon the death of Mr. ZEN, APPRAISER’s NAME was asked to review the collection for estate
purposes. In September 2008 NAME, GG examined and appraised all items of jewelry. These
items were also examined and photographed by APPRAISER’s NAME.
APPRAISER’s NAME, AAA, the chief appraiser signed below, has not now nor has ever been
disqualified by the IRS from preparing IRS appraisals. Nor have any of the COMPANY’S NAME
appraisers ever been disqualified by the IRS from preparing IRS appraisals.
The appraisers, without any past, present, or contemplated future interest which might
tend to prevent a fair and unbiased appraisal, declare the current fair market value of
each item. Valuation is based solely on personal research and analysis of comparative
market data as performed by the appraisers and office assistants at COMPANY NAME as of
date of death, February 2, 2008 . Although the statements of fact contained in this
report are true and correct, the values expressed herein are based on the appraisers’ best
judgement and opinion and are not representations or warranties that the items will
realize that value if offered for sale in the United States. No other party was
significant in the examination or valuation of the appraised property.
Compensation for this appraisal is not contingent upon the arrived valuation. Fee is
based on an hourly rate plus expenses. Further, compensation is not contingent upon the
reporting of a predetermined value or direction in value that favors the cause of the
client, the amount of the value estimate, the attainment of a stipulated result, or the
occurrence of a subsequent event.
The objective of this report is to provide an unbiased fair market value guideline to be
used as a basis to establish estate taxes for a taxable estate with a surviving spouse.
The appraisers understand that this appraisal will be used in connection with an estate
tax return and for potential capital gains, and that a substantial or gross valuation
misstatement resulting from this appraisal may subject the appraisers to a civil penalty
under Section 6695A of the Internal Revenue Code.
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APPRAISERS’ CERTIFICATION(Continued from Page 1)
Photographs and/or digital images are included in this report for reference only. The
client is responsible for obtaining the appropriate photographs if requested by the
Internal Revenue Service.
This is a partial contents appraisal. Appraisers only valued items as indicated by the
estate.
This report has been written according to the rules of the 2008-2009 USPAP (Uniform
Standard of Professional Appraisal Practice). This appraisal is considered to be a
“retrospective” self-contained appraisal report as the appraiser conducted her research
during the Fall of 2008, 6-7 months after the date of death. Although the appraiser
conducted her research in Fall 2008, the effective valuation date is the “retrospective”
date of death, ----- --, 2008
Although this certification page includes salient information regarding the methodology
of the report, additional information regarding the scope of work, assignment conditions,
and disclaimers are important to understand the entire appraisal process. As such, the
entire report is required to fully understand the assignment and this certification page
encompasses the entire report and is not valid without reading and understanding the
entire report.
Total pages of report:
Total number of articles appraised:
Total number of photographs: (Numbered to___ plus addendum photos)
Examination dates: November 11 and 15, December 9, 199*, January 31, and February 3,
2000, May 2, 200*, February 16, 200*; September 4, 200*
Research dates: February 14, 200* - March 11, 2001; May 2 - 9, 200*; February 16 - July
15, 200*; January 15 - June 22, 200*; August 10 - October 3, 200*
Date of death: February 2, 2008
Effective valuation date: February 2, 2008
Issue date of report: October 15, 2008
APPRAISER’s NAME, AAA (Fine Art Appraiser)
Appraisers Association of America,
Certified Member
(Taxpayer ID# #########7)
APPRAISER NAME, GG (Jewelry)
Graduate Gemmologist
(Taxpayer ID# #########)
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CV’S for each appraiser who signs the report
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TABLE OF CONTENTSAppraisers’ Certification Page 1 - 2
Appraisers’ Qualifications Pages 3 - 3A
APPRAISER NAME, AAA Page 3
APPRAISER NAME, GG Page 3A
Table of Contents Page 4
Scope of Work Pages 5 - 11
Explanation of Authorship and Attribution Pages 12 - 13
Explanation of Silver, Gold, and Jewelry Page 14
Explanation of Fine Jewelry, Definition of Terms Pages 15 - 16
Disclaimers, Limiting Conditions and Assumptions Pages 17 - 19
Market Analysis Pages 20 - 21
Total Value Page 21
Appraised Articles
Silver
Articles 1 - 2 Page 23
Entry Foyer
Articles 3 - 4 Pages 24 - 25
Powder Room
Articles 5 - 6 Page 26
Living Room
Articles 7 - 8 Page 27
Library
Article 9 Page 28
Mr. Zen’S Office
Article 10 Page 29
Dining Room
Articles 11 - 12 Page 30
Kitchen and Hall
Articles 13 Page 31
Master Bedroom
Articles 14 - 16 Pages 32 - 33
Son’s Bedroom
Articles 17 - 19 Pages 34 - 35
Jewelry
Article 20 Pages 36
Sources Pages 37 - 39
References Books and Price Guides Page 37
Galleries, Experts, Auctions, and Retail shops Page 38
Websites Page 39
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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE
PROBLEM TO SOLVE: The appraisers were asked to re-appraise a collection of artwork and
antiques and a few items of jewelry belonging to an estate. Although in May 2008, the
appraisers had prepared an updated insurance appraisal with retail replacement values for
the wife of deceased, the estate requires this appraisal with fair market values in order
to complete their estate tax filings and to set a cost basis to be used in the event of
potential capital gains resulting from the sale of these items. This appraisal with
photographs will be sent to the executor of the estate. With client’s
approval/permission, this appraisal report will be sent to their designated
attorney/accountant. The executor is advised to keep a copy of the appraisal for their
records. This report is not valid for any other purpose.
CATEGORIES OF ITEM EXAM INED : American, European, Asian art; American, English, Continental,
Asian antiques; Persian rugs; maps; autographs; silver; china; fine crystal; household
contents
CLIENT: The owner of the collection, the estate of MR. ZEN.
OW NER OF COLLECTION: The client, the estate of MR. ZEN.
USE OF APPRAISAL: Estate filing / potential capital gains.
USER(S) OF APPRAISAL: This appraisal can be used and relied upon by the executor for the
estate, a designated attorney/accountant, and the Internal Revenue Service. Any other
user is considered an unintended user.
EFFECTIVE VALUATION DATE OF APPRAISAL: The value expressed in this appraisal is effective as
of the date of death, Month Date, Year
OW NERSHIP INTEREST / ART LOSS REGISTER: The question of title was not an issue. The estate had
acceptable provenance records for most items. As such, the executor and the appraisers
did not pursue title searches with the Art Loss Register.
AUTHENTICITY: Although the appraisers are not authenticators, the question of authenticity
was not an issue for the appraisers in the valuation of this collection due to the
supporting documentation.
SPECIFIC ASSIGNM ENT CONDITIONS - GENERAL: Although the appraisers periodically visited the ZEN’S
home, the appraisers did not completely re-examine all of the works since the original
1999-2000 appraisal. The appraisers assume the works in this appraisal are in comparable
condition as they were during the original 19**-200*, 200*, 200*, and 200* examinations,
except as noted.
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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 5)
The appraisers were given adequate time to research the items. Appraisers were given
significant documentation for these articles while preparing the original appraisals in
1999-2000, 2003, 2005, and 2008.
SPECIFIC ASSIGNM ENT CONDITIONS (ASSUM PTIONS): The appraisers assume all mediums to be as
reported. A scientific analysis of the chemical compounds was not conducted as it was not
an issue relating to valuation.
SPECIFIC ASSIGNM ENT CONDITIONS (EXTRAORDINARY ASSUM PTIONS): The appraisers assume the information
provided by the client to be correct.
The appraisers assume the works previously examined are the same works which are the
subject of this appraisal.
The appraisers assume the works described and pictured herein are the pieces which are the
subject of this appraisal and that these articles will not be substituted with other
articles by the estate.
The appraisers assume authorship to be authentic, including signatures to be by the named
artists.
Natural gemstones are processed from the time they are extracted from the earth by one or
more traditionally accepted methods. Therefore, unless otherwise stated, all colored
stones are presumed to have been subjected to a stable and possibly undetectable
color/clarity enhancement process. Value conclusions are based on these universally
practiced and accepted processes.
Marks on objects (trademarks, signatures, makers’ marks, serial numbers) may affect the
value of a piece. For the purpose of this appraisal, the appraisers assume that all
markings are authentic, unless otherwise indicated (also considered a limiting condition).
The appraisers assume these works were previously purchased in appropriate markets without
any unusual market stimuli affecting their sale.
The appraisers assume the estate retains full title to works.
SPECIFIC ASSIGNM ENT CONDITIONS (LIM ITING CONDITIONS): The appraisers did not remove all works from
the wall due to their size or location. Items not removed from the walls will be
indicated as such in the individual entries. The appraisal of these items is limited by
what appears on the recto (also considered an Extraordinary Assumption).
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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 6)
The appraisers did not remove any works from their frames or mounts. The appraisal is
limited by what appears within the frame and matte (when applicable) (also considered an
Extraordinary Assumption).
The appraisers did not remove any upholstery to thoroughly examine for signature,
markings, and conditions. The appraisal is limited by what appears within the frame and
matte (when applicable) (also considered an Extraordinary Assumption).
Only when physically possible, did the appraisers examine undersides, and back rails of
furniture for signatures and condition (when applicable) (also considered an Extraordinary
Assumption).
Only when physically possible, did the appraisers remove drawers to examine for signatures
(when applicable) (also considered an Extraordinary Assumption).
Only when physically possible, did the appraisers move heavy furniture to thoroughly
examine for signatures and condition (when applicable) (also considered an Extraordinary
Assumption).
Only when physically possible, did the appraisers lift stone slabs atop furniture to
examine for signatures and condition (when applicable) (also considered an Extraordinary
Assumption).
The appraisers did not examine or test the workings of clocks for accuracy and precision
(when applicable) (also considered an Extraordinary Assumption).
The appraisers did not test any metals for the silver/gold content. The appraisers relied
on the validity/authenticity of the silver/gold markings (also considered an Extraordinary
Assumption).
The appraisers did not remove any stones from their mounts. The weight, grade, color, and
clarity may be limited by the “in mount” examination. As such, this appraisal is limited
by what appears within the mount (also considered an extraordinary assumption).
The appraisers are not authenticators. As such, in certain cases the appraisers may
recommend authentication of specific marks. Authentication of this nature is not the
responsibility of the appraisers (also considered an extraordinary assumption).
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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 7)
When examining diamonds and colored stones, every reasonable effort has been made to
determine the existence of a fracture filling, clarity, or color enhancement process.
However, no binding representation can be made in all circumstances as to the existence
or nonexistence of such process. Enhancement procedures are often undetectable through
the use of a standard portable laboratory. Detection of enhancements is limited by the
gemological equipment used (also considered an Extraordinary Assumption).
The appraisers are not conservators or jewelry repair technicians. As such, they did not
prepare a condition report. This report is limited by the appraisers’ visual inspection.
No other condition report was supplied (also considered an Extraordinary Assumption).
SPECIFIC ASSIGNM ENT CONDITIONS (HYPOTHETICAL CONDITIONS): No Hypothetical Conditions were relevant
to this report.
M ETHOD OF EXAM INATION OF ART AND ANTIQUES: APPRAISER’s NAME, AAA, the chief appraiser, examined
and photographed all items in this report. APPRAISER 2, APPRAISER 3, and APPRAISER 4
conducted further examination of specific items.
The items were examined in a household setting, using daylight, incandescent light, and
occasionally a flashlight. These conditions were considered minimal to adequate, not
optimal. A minimal number of items were examined under a black light by the appraisers
due to location and brightness of the environment.
Examination of fine art and antiques consisted of a visual inspection to identify medium,
style, quality, date, size, and condition of works.
Signature, markings, and labels were noted if found.
Most works have been measured. Measurements are given to the nearest 1/8 inch; height
precedes width unless otherwise stated.
The appraisers assigned a general condition report to each object. “Condition” refers to
what is considered generally acceptable, with ordinary wear and tear for its type, unless
otherwise noted.
M ETHOD OF EXAM INATION OF JEW ELRY: APPRAISER’s NAME, AAA, briefly examined the items in a
household setting while photographing the collection.
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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 8)
Mr. GEMOLOGIST more thoroughly examined and evaluated the items in this appraisal by using
the accepted standards of the jewelry industry and those of the Gemmological Institute of
America. Data was collected “on site” and in accordance with those standards by using
careful observation and professional equipment. Items were examined through one or more
of the following devices/equipment: a portable Gemmological laboratory, an American
Optical 570 Binocular Microscope with 10x-63x magnification, 10x loupe, a fiberoptic probe
illuminator (with monochromatic filter), long and short wave ultraviolet (UV)
fluorescence, Rayner Refractometer, dichroscope, spectroscope, electronic scales,
leveridge gauge, G.I.A. Gem Set, Gem Dialogue Color Comparison, Diamond Grading Light
Source, G.I.A. diamond master comparison stones, and a metal testing kit.
The quality grade of any gemstone is restricted by various types of mountings, settings,
and lighting conditions. This quality grade of any gem may differ if it is removed from
a mounting and/or examined under a different light source. However, in order to
standardize the examination environment, the jewelry industry has prescribed the use of
“special” lighting. The prescribed light sources were used in this examination. This
includes both a diamondlite (north daylight equivalent) and a fiber optic probe
(monochromatic light source). Additionally, when appropriate, long/short wave (UV)
fluorescence was used to aid in the authentication of diamonds and colored stones.
Metal quality of finished jewelry cannot be conclusively established by the gemologist
appraiser. Common industry practice suggests that metals be identified by acid testing,
test needles and rub stones as well as confirming the authenticity of identification
marks. The designer and/or manufacturer of a given piece of jewelry may be identified by
extensive research and the authentication of trademarks, hallmarks, and maker’s marks.
The gemologist appraiser was able to ascertain material, style, size, and quality of
workmanship from his personal examination and referencing photographs and personal
research.
Each work has been measured. All measurements are approximate. Measurements are given
to the nearest mm/gram. Unless otherwise stated, the weights of all mounted gemstones are
estimated by using accepted gemological formulas, and should be within the accepted
limitations of that method. Although state-of-the-art gemological equipment is used, the
actual weight of gemstones when unmounted may be different from the estimated wight by
formula (also considered an extraordinary assumptions and limiting condition).
No condition report was supplied. The appraiser has assigned each piece a general
condition comment - good, fair, or poor - and a qualification. “Condition” refers to what
is considered generally acceptable, with ordinary wear and tear for its type, unless
otherwise noted.
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The Gramm-Leach-Bliley Act, passed in 1999 and fully effective in July, 2001, addressed
overall financial industry reforms as well as emerging consumer privacy and security
issues. Officially called the “Financial Modernization Act of 1999”, it affects the
technology and information system policies used by anyone engaged in providing financial
services either directly or indirectly to consumers. Appraisers are specifically named
as institutions required to follow the stipulations of the law.
10
SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 9)
PHOTOGRAPHY: Photographs are taken upon request and necessity. The appraiser took 35mm
photographs of the work. No modifications or alterations were made to the appraisers’
photographs.
M ETHOD OF RESEARCH: Research was conducted in the offices of COMPANY NAME. The office is
equipped with an extensive library of more than 10,000 research books and auction
catalogues. Additional research was conducted on the internet using standard search
engines as well as pricing data bases to which COMPANY NAME subscribes (including ArtNet,
ArtFact, ArtPrice, AskArt, ArtInfo, Gordons, Prices for Antiques, Antique Clocks Price
Guide). Appropriate galleries and auction houses were contacted for information when
necessary. Minimal outside library/museum research was conducted for this specific
appraisal. Specific sources and Internet sites are listed at the end of the report.
TYPE OF APPRAISAL: This report is considered to be a self-contained appraisal report
according to the rules of the 2008-2009 USPAP (Uniform Standard of Professional Appraisal
Practice). Comparable auction history is included in the report when relevant. Specific
comparable retail sales history is confidential according to the Gramm, Leach, Bliley Act1
and cannot be disclosed without the owner’s permission. However, the appraisers have
noted general conversations in the client’s file in the offices of COMPANY NAME and are
available for the client or the Internal Revenue Service (with the client’s permission)
to examine upon request. This information will be kept by COMPANY NAME for a minimal
period of five (5) years after the date of issue or two (2) years after final disposition
of any judicial proceedings involving the appraisers, whichever period expires last.
APPROACH TO VALUE: The appraisers named on the cover page of this document employed the
"market comparison" approach to arrive at the appraised "fair market value". The "income"
approach and the "cost" approach are not applicable to this particular appraisal.
M ARKET EXAM INED: The "market comparison" approach analyzes recent sales of comparable
articles at major international and regional fine art auctions, private and public sales,
shows and exhibitions, as well as prevailing prices at retail shops and galleries where
the article may normally be traded. For this particular appraisal, the appraisers
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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 10)
primarily examined the appropriate international gallery and auction markets. Adjustments
are then made for each article which consider age, condition, rarity, artistic merit,
technical workmanship, current trends and availability of an article as compared to such
recent sales.
TYPE OF VALUE USED: Fair Market Value.
DEFINITION OF VALUE: Appraised “fair market value” as defined by IRS Section 1.170 and
20.2031 (b) is "the price at which the property would change hands between a willing buyer
and a willing seller, neither being under any compulsion to buy or to sell and both having
reasonable knowledge of relevant facts." (According to Technical Advisory Memorandum
9235005 (May 27, 1992), fair market value should include the buyer's premium.) 20.2031
(b) continues "the fair market value of an item of property includible in the decedent's
gross estate is not to be determined by a forced sale price. Nor is the fair market value
of an item of property to be determined by the sale price of that item in a market other
than that in which such item is commonly sold to the public, taking into account the
location of the item wherever appropriate. Thus, in the case of an item of property
includible in the decedent's gross estate, which is generally obtained by the public in
the retail market, the fair market value of such an item of property is the price at which
the item or a comparable item would be sold at retail." (Treasury Regulation Section
1.170A-13©)(3)(1988)
SOURCE FO R VALU E DEFINITION: IRS Section 1.170 and 20.2031 (b) and Treasury Regulation
Section 1.170A-13©(3)(1988)
USPAP COM PLIANCY: The report was written by APPRAISER’s NAME, AAA whose USPAP
certification is valid until May 2009.
This appraisal report follows the guidelines of USPAP in that the report provides all of
the necessary information/analysis to satisfy the “retrospective” report development
requirements as defined in Standard 7 (Personal Property, Development) and the writing
requirements of a Self-contained Appraisal as defined in Standard 8 (Personal Property,
Reporting).
Additionally, the report includes complete and augmented descriptive text from the past
appraisals with revised fair market valuations based on the 2008 market. This is
considered Option 1 under Update Report Requirements in Advisory Opinion 3 (page A-8).
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12
EXPLANATION OF AUTHORSHIP AND ATTRIBUTION
GLOSSARYA George III mahogany linen press
Late 18th century
This heading and date indicate that in the appraisers’ qualified opinion the piece is
essentially of the period. Later restorations and alterations are indicated and
considered in the valuation.
A George III-style mahogany linen press
19th century
The heading and date with the word "style" included indicates that in the appraisers’
qualified opinion the piece is an intentional copy of an earlier design. Later
restorations and alterations are indicated and considered in the valuation.
FURNITURE PERIODS AND STYLES
Dates British Monarch U.K. Period French Period
1649 - 1660 Commonwealth Cromwellian Louis XIV (1643 - 1715)
1660 - 1685 Charles II Restoration
1685 - 1689 James II Restoration
1689 - 1694 William & Mary William & Mary
1694 - 1702 William III William III
1702 - 1714 Anne Queen Anne
1714 - 1727 George I Early Georgian Regence (1715 - 1723)
1727 - 1760 George II Early Georgian Louis XV (1723 - 1774)
1760 - 1811 George III Late Georgian Louis XVI (1774 - 1793)
Directoire (1793 - 1799)
Empire (1799 - 1815)
1812 - 1820 George IV Regency Restauration (1815 - 1830)
1837 - 1901 Victoria Victorian Louis Phillippe
2 Empire (1848 - 1870)nd
3 Republic (1871 - 1940)rd
1901 - 1910 Edward VII Edwardian Art Nouveau (1890 - 1920)
SIGNATURE
When a work is signed/dated/inscribed by the hand of the artist/craftsman, the appraiser
will state "Signed/stamped/incised..." exactly as written by the particular
artist/craftsman in the specific composition. This means that the appraiser believes
the work to be by the "signed" artist/craftsman.
(Continued on Page 13)
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EXPLANATION OF AUTHORSHIP AND ATTRIBUTION(Continued from Page 12)
When a signature/stamp/seal exists on a work, but the work does not appear to be by the
hand of such signed artist, the appraiser will indicate that the work "Bears
signature/stamp of...". This means that the appraiser does not believe the work to be
by the "signed" artist/craftsman.
AUTHORSHIP GLOSSARY
TITLE - If a generally accepted title for the work exists, that title is given. If the
work is untitled or the title is unknown, a descriptive title may be assigned and is
indicated with an asterisk (*).
When provenance is unknown and a search of reliable sources fails to render information
concerning a particular artist or work involved, a value determination is based on
artistic merit and market conditions.
AUTHORSHIP - When a work is unsigned but generally accepted in the scholarly community
to be by a particular artist, that artist's name will be indicated as "Ascribed to...".
This is the highest category of authenticity.
When a question of doubt concerning authorship prevails, the authorship will be
indicated as "Attributed to..." a particular artist or a school.
When a signature exists on a work, but the work does not appear to be by the hand of
such signed artists, the appraiser will indicate that the work "Bears signature of...".
This means that the appraiser does not believe the work to be by the "signed" artist.
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EXPLANATION OF SILVER, GOLD, AND JEWELRY
Silver - Only articles which are marked with a sterling standard
(925/1000 or greater), the word sterling, or have been
scientifically proven to be sterling, will be described as sterling
silver. Articles with some other silver standard (Continental -
800/1000 or greater, coin, seven metal), or have proven to be silver
of a certain standard, will be identified accordingly.
Gold - Only articles which are marked 10K, 14K, 18K, 24K, or have
been scientifically proven to be gold, will be described and
identified accordingly as gold.
Jewelry - All articles of fine jewelry with major stones are
examined by a Graduate Gemmologist and will be described and
identified accordingly. Articles of vintage and/or collectible
jewelry are examined by an antique’s appraiser and valued as
antiques rather than their value in materials.
All weights have been determined by use of Troy or pennyweight
scales.
Current spot silver and gold prices on the New York market are a
factor in the determination of appraised value of contemporary
silver. Adjustments are then made for each article after
considering age, condition, rarity, artistic merit, technical
workmanship, current trends, and availability of an article.
Gold items with a fine art, antique, or rare value are indicated in
the report as "(GOLD)". This indication is directly under the
article number.
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EXPLANATION OF FINE JEWELRYDEFINITION OF TERMS
DIAMONDS AND COLORED STONESAll articles of fine jewelry with major stones are examined by a Graduate Gemmologist and will
be described and identified accordingly. Articles of vintage and/or collectible jewelry are
examined by an antiques appraiser and valued as antiques rather than their value in materials.
Diamond and colored stones are valued based on the following criteria when significant:
CARATCarat is the measure of weight, not the size of the stone. It is a small unit of measure
equal to 200 milligrams. The word "carat" is derived from “carob”, the tree whose seeds
became the standard for measuring diamonds. A 1 carat diamond is made up of 100 units called
"points". Therefore, a 50 point diamond is a ½ carat or .50 carat. (“Carat” in reference to
the weight of a stone should not be confused with "karat" in reference to gold.)
COLORDiamonds are assigned a color grade based upon the amount of body color exhibited when
compared to a set of Master Color Diamonds which have been color-graded and registered by the
GIA Gem Trade Laboratory. In most cases, diamonds are graded using a standardized light
source equivalent to daylight.
The color grading scale is as follows:
D E F * G H I J * K L M * N O P Q R * S T U V X Y Z * Z+ COLORLESS NEAR FAINT VERY LIGHT YELLOW LIGHT YELLOW FANCY COLORLESS YELLOW YELLOW
CLARITYClarity is an indication of a diamond's purity. Clarity is determined by the overall number,
size, and location of inclusions (flaws). The U.S. Federal Trade Commission established the
jewelry industry's standards for diamond clarity based on 10-power magnification. As such,
the appraiser assigned diamonds a clarity grade based upon examination under a 10x binocular
microscope equipped with dark field illumination.
The clarity grading scale is as follows:
FLAWLES
SI.F. VVS¹¹ VVS² VS¹ VS² SI¹ SI² I¹ I² I³
INTERNALL
Y
FLAWLESS
VERY VERY
SLIGHTLY INCLUDED
VERY SLIGHTLY
INCLUDED
SLIGHTLY
INCLUDED
IMPERFECT EYE VISIBLE
INCLUSIONS
CUTCut refers both to the shape of a diamond and the precise arrangement of its facets. The most
popular cuts are Round (AKA Brilliant), Pear, Marquise, Emerald, Oval, Princess, and Heart.
(Continued on Page 16)
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EXPLANATION OF FINE JEWELRY - DEFINITION OF TERMS(Continued from Page 15)
PEARLSAll articles of fine jewelry with pearls are examined by a Graduate Gemmologist and will be
described and identified accordingly. Articles of vintage and/or collectible jewelry are
examined by an antiques appraiser and valued as antiques rather than their value in materials.
Pearls are valued based on the following criteria when significant:
SHAPERound - well-matched, globular (most valuable)
Half-round - flat bottoms
Baroque - irregular
Fresh water - irregular
BODY COLORThere are six main body colors found in pearls: white, cream, pink, golden, black, and
green. Pearls are also found in blended color variations such as lavender, silver, and gray.
Pearls are ideally graded in natural daylight using a white background. If natural light is
unavailable, fluorescent light is the next best lighting. Color evaluation of pearls is
controversial as a value factor. While color is significant, it is not granted over-
importance in the final estimation of value. The evaluation of color is more difficult and
rather subjective, as there are subtleties of market preference based on attitudes of
specific clients and regional preferences.
LUSTERPearls are rated according to the fineness of their luster. Luster is determined by the
intensity of the reflection found on the surface of a pearl which results from light striking
the surface. Luster is seen on a smooth surface where no ridges are present to reflect the
light in many directions. The more mirrorlike the surface reflection of a pearl, the better
the quality. In evaluating pearls, the appraiser assigned a luster rating of very good,
good, and fair.
MATCHMatch is an indication of continuity and quality in a strand of pearls. In a well-matched
strand, the pearls are similar in shape and give the viewer the overall impression of
evenness. A well-matched strand is given a higher value consideration than one of mixed
shapes. In evaluating a stand of pearls, the appraiser assigned a match rating of very good,
good, and fair.
BLEMISHESBlemishes, or spotting, are the wrinkles, cracks, gaps, bumps, or dull spots on the surface
skin of pearls. The most important criterion for assessing the value of a pearl is the
perfection of the skin, i.e., the lack of blemishes. As such, the appraiser has indicated
any apparent blemishes.
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DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS
This certificate of appraisal is given, subject to the terms and conditions hereinafter
set forth, all of which are a part hereof unless expressly set aside in writing either
on the pages of this certificate or by writing attached to the certificate signed by
all parties concerned.
This appraisal consists of ## pages and must be presented in its entirety to be
valid.
This appraisal is prepared solely for estate tax purposes using the comparative
market approach to arrive at the fair market value as of , . It is to be used
solely by the Estate of MR. ZEN and the agents (executor, accountants, attorneys) for
estate tax purposes. This report can also be relied upon by the Internal Revenue
Service .
The client shall indemnify, defend, and hold us harmless from and against any actions,
claims, liabilities or expenses incurred as a result of claims based on or arising from
the appraisal, by third parties unrelated to the immediate purpose of this appraisal.
Unless otherwise stated herein, this certificate is based only on the readily apparent
identity of the items appraised, and no further opinion nor guarantee of authenticity,
genuineness, attribution, or authorship is made. However, in appraising the subject
articles, the appraisers found no reason to question the authenticity of the articles.
To the appraisers’ knowledge, scientific and/or laboratory testing has not been
performed on any item. When necessary, items were examined under a 10X magnifying
lens.
The appraised value is based on the whole ownership and possessory interest
undiminished by any liens, fractional interests or any other form of encumbrance or
alienation.
This certificate is made at the request of the party named for her use. It is not an
indication or certificate of title ownership. The identification of the interest of
the requesting party is simply that represented to the appraisers by such party and no
inquiry or investigation has been made nor is any opinion given as to the truth of such
representation.
The values expressed herein are based on the appraisers’ best judgment and opinion and
are not representations or warranties that the items will realize that value if offered
for sale at an auction or otherwise. The values expressed are based on current
information on the assigned effective valuation date stated on the cover page of this
report. No opinion is hereby expressed as to any future value, nor unless otherwise
stated, as to any past value. (Continued on Page 18)
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DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS(Continued from Page 17)
The appraisers have considered the highest and best use of the appraised articles with
respect to the most appropriate, common, and legal marketplace given the purpose of the
appraisal.
The appraisers examined the artwork in 19**-200* and periodically (but not completely
and specifically) throughout the past eight (8) years. The wife of the client has
reported the articles to be in similar condition, without further damage or repairs.
The wife of the client reported that the works are in her possession, except as noted.
As such, the updated appraised values reflect comparable existence and condition of the
article per the 1999-2000 and successive appraisal reports. The appraisers are not
responsible for unreported deaccessions or unreported condition issues which may have
occurred since examination.
Other than previous appraisal assignments, do the appraisers have any past interest,
present interest, nor any contemplated future financial interest in the appraised
property. Nor do the appraisers have any personal interest or bias with respect to the
parties involved. This appraisal was done objectively, according to the rules of the
IRS (in the Pension Protection Act of 2006 H.R. 4, Public Law 109-280), and in
accordance with the 2008-2009 Uniform Standards of Professional Appraisal Practice.
Further, the appraisers have no other interest which might tend to prevent making a
fair and unbiased appraisal.
This appraisal was researched and prepared by the appraisers named on the cover page
of this report. Supplemental research was supplied by office assistants and interns
at COMPANY NAME, particularly Jacklyn Smith, Farah Fawcett, and Kate Jackson. No other
person supplied significant assistance in preparation of this report.
A significant amount of client’s information was provided to the appraisers by the
client or specific dealers. However, information regarding provenance on some articles
was limited to hearsay. Any factual and/or hearsay information provided by the client
is assumed to be correct, however, the appraisers are not responsible for any errors
or misrepresentations on the part of the client.
The appraisers did not personally examine any of the comparable sales and/or offerings
with regard to these particular works. The appraisers are relying on information made
available through price data bases and gallery inventories regarding authenticity,
condition, and sales information concerning these works.
Consulting sources are listed in the back of the report. Information furnished by
consulting sources is assumed to be reliable, but is not guaranteed by the appraisers
or their firm.
(Continued on Page 19)
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DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS(Continued from Page 18)
The appraisers are not required to give testimony, be present in any court of law, or
appear before any commission or board by reason of this appraisal, unless prior
arrangements have been made with the appraisers. Should this report be challenged in
any way, not limited to litigation, it is understood that the appraisers are prepared
to defend their appraisal, if required. Courtroom testimony, mediation proceedings,
and the necessary preparation are considered to be separate assignments and will be
billed at our then current normal hourly rate plus expenses as required.
Possession of this report, or copy thereof, does not include the right of publication
without the written consent of the appraisers and their firm. This report in its
entirety, or any part thereof, including the identity of the appraisers or their firm,
shall not be made public through advertising, public relations, news releases, sales,
or other distributive or information media without the written consent of the
appraisers and their firm.
Copies of this appraisal and notes pertaining to the appraisal, written and electronic,
will be kept in the offices of COMPANY NAME for a minimal period of five (5) years
after the date of issue or two (2) years after final disposition of any judicial
proceedings involving the appraisers, whichever period expires last. COMPANY NAME will
make every effort to store clients’ records in a safe and secure environment. However,
the firm is not responsible for acts of war, terrorism, or other such unexpected
catastrophes which may affect the safekeeping of this report.
All matters treating the duties, responsibilities, and liabilities of the appraisers
are in accord with the Valuation Standards and Professional Practices as outlined by
the Appraisal Foundation in the 2008-2009 Uniform Standards of Professional Appraisal
Practice and the Principles of Practice and the Code of Ethics of the Appraisers
Association of America.
© 2009 COMPANY NAME. All Rights Reserved. None of the contents of this appraisal report may be reproduced, stored in a retrieval system ortransmitted in any form or by any mean (electronic, mechanic, photocopying, recording or otherwise) without the prior written permission ofCOMPANY NAME and the appraisers' signature.
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MARKET ANALYSIS
Recent published auction sales and available retail sales are listed/discussed in
the report following the description of each appraised article of significant value
(primarily those with an FMV in access of $1,000). These listings serve to
substantiate the final appraised value as well as indicate market preferences and
levels. Comparables normally include items that sold prior to the date of the
decedent's death (02/02/08). However, in certain cases, a more appropriate
comparable appeared on the market after the date of death. In which cases, we have
listed those comparables, but have considered the time factor and if the market had
changed since the date of death.
Given that the art markets are always volatile markets, an overall market valuation
forecast cannot be established. Particularly with the uncertain political and
economic situation of the world after September 11, 2001, a market analysis is
difficult to prepare in these unstable times.
Many factors enter into valuations of fine art beyond pure aesthetic appeal. Among
the principles which may affect future values of items are the basic economic
principles of supply and demand, national and international legislation, the global
monetary market, social attitudes, and design trends. However, based on an analysis
of the market since 2000 and an optimistic presumption of a future relatively stable
growth, it could be concluded that certain areas have and will appreciate at a
greater rate than others.
The past few seasons have been very successful for the art market with both
Christie’s and Sotheby's turning out record-breaking sales. Recognized masters
continue to perform well at auction, paralleling their retail gallery sales. Works
by secondary artists have also proven to command a considerable price at auction,
however, their retail gallery sales are considerably higher than their auction
equivalents. However, as works of the first tier artists become increasingly
difficult to find, renewed interest in the secondary artists occurs, resulting in
a rise in their prices. Some of your works by the second tier artists may
significantly take off in the years ahead.
Since Georgian furniture has a classic look that suits most interiors, it is fairly
stable, but the lower end of the market is experiencing a dip in the market as the
Modernist look is the rage of decorators. Although Georgian furniture is readily
available on the American as well as the European market, fresh quality examples are
often difficult to find. Due to the overactive antiques market combined with
extreme global wealth, a significant rise in the top end of the market has been
observed. Prices for the best pieces continue to rise. Collectors continue to pay
top dollars and outbid each other for exquisite examples of quality Georgian style
and workmanship when such pieces are found. Much of your English furniture pieces
fall into this category. (Continued on Page 21)
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MARKET ANALYSIS(Continued from Page 20)
French and Continental furniture are currently performing surprisingly better than
English furniture as collectors are looking for a unique look.
Your rug collection includes some exquisite examples of desirable age and color.
The antique and semi-antique rug market is doing phenomenally well. However, the
rug marker for newer rugs, in general, is not among the stronger markets at the
moment.
Chinese antiquities is one of the markets that has skyrocketed. Changes in the
Asian economy have created a new pool of buyers. Many of them purchasing historical
works and building new cultural collections. Significant works as well as 20th
century tourist works have seen a rise in prices.
That said, with the national economy experiencing a downturn, the art market is
considered fair game. The Fall sales will be indicators of the next few years.
Please note that this appraiser does not guarantee any prices or predictions for
values in the future.
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TOTAL VALUE
SILVER $ 0.00
CONTENTS $ 0.00
JEWELRY $ 0.00
GRAND TOTAL $ 0.00
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APPRAISED SILVER
Article
Number
Appraised
Value
Description
1. $ 000.00
Piece
An American sterling silver water pitcher of urn form with a
spurred C-shaped handle, raised on a spreading circular base
Pattern 182
Gorham Manufacturing Company, Providence, Rhode Island
1956
Height: 8 7/8 inches
Weight: 23 ounces
Condition: Good.
Photo 10
2. $ 000.00
Piece
An English Regency sterling silver water pitcher of urn form
with an engraved armorial indicating Resurgo above a reeded
lower section continuing to a spreading circular pedestal base,
mounted with a spurred wood handle
Maker HI
London, 1813
Height: 12 inches
Weight: 43 ounces
Provenance: C. M. Leonard Antiques, New York
Sale - March 3, 199-
Condition: Good.
Auction comparables:
05/22/08 – Sotheby’s, NY, lot 152, Regency water pitcher, H:
11.5 Wt: 35 oz, est. $1,500-2,500; sold $4,055
03/29/08 – Christie’s, NY, lot 12, Regency water pitcher,
H: 13.5 Wt: 45 oz,, est. $2,000-3,000; sold $3,575
02/03/08 – Christie’s, London, lot 215, Regency water pitcher,
H: 12.25 Wt: 42 oz,, est. £2,000-3,000; sold $3,377
Photos 12 and 13
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APPRAISED CONTENTS - ENTRY FOYER
Article
Number
Appraised
Value
Description
3. $ 000.00
Piece
Name*
A quiet early autumn landscape depicting trees and bushes sur-
rounding a reflective winding river, with hills in the
background, under a blue sky filled with yellow and pink-tinged
clouds, executed in a painterly manner
Oil on canvas board
Cal E. Broming (American, 20 century)th
Executed 1969
Signed Cal E. Broming [?] and dated 1969 at lower right
Work size: 8 x 9 3/4 inches (sight)
Framed size: 13 x 15 inches
20 century gold-painted wood frame with linen-covered filletth
and giltwood bevel
Condition: Good.
Note: Only one record for artist was found in search of
standard biographical and auction sources which leads appraiser
to question spelling of artist’s name. Should additional
biographical information be made available, this value should
be reviewed.
Photos 156 and 157
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APPRAISED CONTENTS - ENTRY FOYER
25
4. $ 000.00
Piece
Name
An early autumn landscape showing a tall tree with shorter
yellow-leafed trees and bushes of purple wildflowers at base
with other orange-leafed trees on distant hill at right and in
left valley, under a blue sky filled with cumulus clouds
Oil on canvas
Walter Whitcomb Thompson (American, 1882 - 1948)
Executed January 25, 1927
Signed Walter W. Thompson at lower right; also titled The
Monarch, signed by Walter W. Thompson, dated 1-25-27, and
indicated N.Y. on reverse
Canvas size: 20 x 24 inches
Framed size: 23 5/8 x 27 3/8 inches
20 century gilded oak frameth
Condition: Good.
Auction comparables:
06/15/08 – Charlton Hall Galleries, Columbia, SC, lot 624,
Morning Siesta, Murrells Inlet, South Carolina, o/board, 24 x
20, est. $5,000-7,000; sold $4,800
06/17/03 – John Moran, Altadena, CA, lot 157, Sangre de Christo
Range near Salida, 1922, o/canvasboard, 12 x 16, est. $800-
1,200; sold $605
06/04/03 – Alderfer’s, Hatfield, PA, lot 270, Now the Day is
Over, o/c, 20 x 30, est. $1,000-1,200; sold $1,380
Photos 164 and 165
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APPRAISED CONTENTS - POWDER ROOM
Article
Number
Appraised
Value
Description
5. $ 000.00
Piece
A Dutch Baroque-style oyster-veneered burl walnut and marquetry
wall mirror, the oblong mirrored plate within a conforming
moulded frame, each corner with inlaid scrolling foliage
Late 19 centuryth
Height: 38 inches Width: 30¼ inches
Provenance: Yale Burge Antiques, Inc., New York
Sale - May 3, 1990 Stock number 504/5856
Via IMA Designs Ltd., New York
Condition: Good; some losses to mirrored plate.
Auction comparables:
11/01/05 - Sothebys, London, lot 174, Anglo-Dutch oyster-
veneered mixed wood wall mirror, Wm & Mary, Second half 17th
C., 41 x 33, est. £3,000-4,000; sold £9,000 ($16,364)
04/16/02 - Christie’s, NY, lot 244, Anglo-Dutch oyster-veneered
mixed wood wall mirror, Wm & Mary, Late 17 C., 35 x 29, est.th
$8,000-12,000; sold $15,535
Valuation: Although comparables are earlier, they are of the
same style. Value is reduced due to later date.
Photo 191
6. $ 000.00
Piece
A French cut-crystal covered dish of circular shape, the cover
and base cut with starburst design
Massena
Number 733 401
Baccarat, Paris
Late 20 centuryth
Marked underneath Baccarat France
Height: 3 inches
Diameter of bowl: 5 3/4 inches
Condition: Good.
Note: Discontinued.
Photos 188 and 189
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APPRAISED CONTENTS - LIVING ROOM
Article
Number
Appraised
Value
Description
7. $ 000.00
Piece
“Name”
An abstracted depiction of an old man with hump back seated on
a stool and with a young boy clutching his left knee, the man
with a black crow perched on left shoulder and black cat
climbing onto right knee
Oil on canvas
Trento Longaretti (Italian, born 1916)
Executed 1967
Signed T. Longaretti at lower right; also marked 1276/67 Trento
Longaretti, “Nowno Rouenta of Bombino Gietto” 1967 on reverse
Canvas size: 27 3/4 x 19 3/4 inches
Framed size: 35¼ x 27 inches
20 century gilded and painted wood frame with yellow linen-th
covered fillet
Condition: Good.
Auction comparable:
11/09/07 - Dobiaschofsky, Bern, lot 593, Il prestigiatore del
teatro dei poveri, o/c, 39.4 x 31.9, est. $11,819; sold $11,473
Photos 206 and 207
8. $ 000.00
Piece
An American upholstered three (3)-seat sofa with enclosed back
and arms over a tufted seat cushion and straight skirt covered
in yellow strié silk upholstery with yellow and peach tape trim
Late 20 centuryth
Height: 28 3/8 inches Length: 7 feet, 1 inch (85 inches)
Condition: Good.
Valuation: Auction market does not reflect the appropriate FMV.
As such, the appraiser looked to the decorator market and
applied a discount to arrive at the FMV.
Photo 339
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USPAP DOES NOT DICTATE FORM, FORMAT OR STYLE
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28
APPRAISED CONTENTS - LIBRARY
Article
Number
Appraised
Value
Description
9. $ 000.00
Piece
Name (Number -2-1)
A marine scene showing a large sailing vessel on rough waters
with a smaller sailing vessel in the distance, clouded white
sky
Oil on board
Montague J. Dawson (British, 1895 - 1973)
Executed September 30, 1960
Signed Montague Dawson at lower center
Work size: 20 x 24 inches
Framed size: 26¼ x 30¼ inches
20th century giltwood frame
Provenance:
Frost and Reed, London Number 4261 Date 30-9-60 (label)
Marine Arts Gallery, Salem, Massachusetts
Sale - January 25, 1988
Condition: Good.
Note: Label on reverse indicates that Dawson was originally
commissioned to paint this work for the --- House. However,
when he completed the work and delivered it to the --- House,
they found the painting to be too small. He later painted a
larger one which currently hangs in the --- House.
Auction comparables:
11/06/07 – Sotheby’s, London, lot 78, Homeward Bound, o/c, 20.1
x 29.9, est. $61,112-101,853; sold $100,852
01/31/07 – Christie’s, NY, lot 344, The “Arc” and the “Dove” off
the Scilly Isles, o/c, 28 x 42, est. $60,000-80,000; sold
$72,000
Valuation: A premium is added due to the --- House connection.
Photos 352, 353,
354, and 355
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29
APPRAISED CONTENTS - MR. ZEN’S OFFICE
Article
Number
Appraised
Value
Description
10. $ 000.00
Piece
Name
A realistic landscape study depicting a stream flowing through
a hilly woodlands area, cascading from a tree-covered hill
under broken trees and over rocks
Oil on canvas
Jervis McEntee (American, 1828 - 1891)
Executed July 1855
Initialed JME in monogram and dated 1855 at lower center;
reverse original stretcher also inscribed Lanes and dated July
1855
Canvas size: 14½ x 15 inches
Framed size: 21¼ x 16¼ inches
19 century giltwood frameth
Provenance:
Collection of the family until 1976
Hirschl and Adler, New York Sale - April 10, 198-
Stock number APG 2247h
Condition: Good.
Note: Canvas relined with note stating the canvas was labeled:
Williams, Stevens, and Williams Looking Glass Ware Rooms and
Art Repository Engravings, Art Materials 353 Broadway, New
York.
Auction comparables:
09/13/08 – Leland Little Auctions, Hillsborough, NC, lot 227,
Forest Interior, 1864, o/c, 14.2 x 17.2, est. $4,000-6,000;
sold $11,000
10/25/07 – Shannon’s, Milford, CT, lot 98, Forest Interior,
1883, o/c, 16.2 x 11, est. $10,000-15,000; unsold
09/12/07 – Christie’s, NY, lot 22, A Grove of Trees, Ashokan,
New York, 1885, 15.5 x 11, est. $6,000-8,000; sold $7,500
Photos 468 and 469
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30
APPRAISED CONTENTS - DINING ROOM
Article
Number
Appraised
Value
Description
11. $ 000.00
Piece
A mahogany two (2)-pedestal dining table, the rectangular top
with rounded corners inlaid with brass stringing over a pierced
apron, raised on two (2) vasiform pedestals, each with three
(3) brass-inlaid downswept legs, brass lion paw feet
Second half 20 centuryth
Height: 30 1/8 inches Length: 83 3/4 inches
Width: 44 1/8 inches
Condition: Good.
Valuation: Auction market does not reflect the appropriate FMV.
As such, the appraiser looked to the decorator market and
applied a discount to arrive at the FMV.
Photos 521, 522, and 523
12. $ 000.00
Part service
A German porcelain partial coffee service, each white piece
decorated with an inverted scalloped cobalt border patterned
with gilt flowers and gilt scrollwork trim and a cluster of
polychromed flowers centered below each arch
Furstenberg Porcelain Manufactory, Furstenberg, Brunswick
20 centuryth
Marked 7
Comprising:
Eight (8) cups
Height of each: 3 inches
Six (6) saucers
Diameter of each: 5 7/8 inches
One (1) two-handled covered sugar bowl of squat bulbous form
One (1) cream pitcher
A total of sixteen (16) pieces
Condition: Good.
Photos 576, 577, and 578
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31
APPRAISED CONTENTS - KITCHEN AND HALL
Article
Number
Appraised
Value
Description
13. $ 000.00
Piece
Name (Number 259)
A colored botanical print depicting a purple-tinged green
cabbage on a stem, with a slender stem with tiny yellow
blossoms in the background
Engraving printed in colors on paper
Johann Weinmann (German, died 1788)
Executed circa 1737 - 1747
Plate size: 12 3/4 x 8½ inches (plus margins)
Framed size: 24 x 18½ inches
20 century green and black plaid painted wood frame with hand-th
painted French matte and plexiglass plate
Provenance: C. M. Leonard Antiques, New York
Sale - May 21, 1995
Condition: Good.
Note: Images are reported to be the first botanical prints to
be printed in color.
Auction comparables:
09/30/08 – Bonhams, London, lot 21, A Collection (12 works from
The Phytanthoza Iconographia Series), 1737-1745, color
engraving, 12.8 x 8.5, est. $1,200-1,800; unsold
09/02/08 – Christie’s, S. Kensington, lot 477, Vegetable Studies
from Phythanthoza Inconographia mezzotints, printed in green,
hand prntr, 13 x 8.5, est. $1,189-1,586; sold $1,750
07/11/07 – Christie’s, S. Kensington, lot 1312, Vegetable
Studies group of 8 from Phythanthoza Inconographiam)
mezzotints, 13 x 8, est. $796-1195; sold $2,300
01/20/05 – Christie’s, London, lot 163, Botanical Studies (set
of 12), color etching and mezzotint with handcoloring, 13.2 x
8.8, est. $9,157-14,653; sold $31,460
Photos 626 and 627
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32
APPRAISED CONTENTS - MASTER BEDROOM
Article
Number
Appraised
Value
Description
14. $ 000.00
Piece
Name
An impressionistic landscape, almost Pointillist in manner,
depicting a meadow of green hues at left, having lush foliage
in right portion of composition, with slightly obscured house,
as seen by rooftop view, at left foreground, having buoyant,
hazy clouds hover about lavender mountainous region in the
background
Oil on canvas
Lilla Cabot Perry (American, 1848 - 1933)
Signed Lilla Cabot Perry at lower right
Work size: 19½ x 29½ inches (sight)
Framed size: 28½ x 39 inches
20 century giltwood frameth
Provenance: Hirschl and Adler, New York Sale - April 10, 1981
Stock number APG 820
Exhibition:
Lilla Cabot Perry A Retrospective Exhibition, The Currier
Gallery of Art, Manchester, New Hampshire; Hirschl and Alder
Galleries, New York; New Jersey State Museum, Trenton, 1969 -
1970, number 12, illustrated
American Paintings from the Late 18 through the Early 20 th th
Century, Wildenstein Art Center, Houston, Texas, 1978, number
35
Condition: Good.
Auction comparables:
12/20/06 – Christie’s, NY, lot 89, Haystacks, Giverny, o/c, 17.8
x 23.3, est. $3,000-5,000; sold $19,200
03/05/03 – Sotheby’s, NY, lot 69, The Foot Bridge, 1929, o/c,
20.2 x 24, est. $12,000-18,000; sold $14,400
Photos 753 and 754
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APPRAISED CONTENTS - MASTER BEDROOM
33
15. $ 000.00
Piece
An American upholstered (2)-seat sofa with an arched rectangular
back and rolled armrests, the whole trimmed with cording,
covered in ivory cotton upholstery with fringed skirt
Circa 1977
Provenance: Irving M. Altman, New York
Sale - December 22, 1977
Condition: Good.
Valuation: Auction market does not reflect the appropriate FMV.
As such, the appraiser looked to the decorator market and
applied a discount to arrive at the FMV.
Photos 750 and 751
16. $ 000.00
Group
A group of four (4) French crystal fish figurines, each moulded
in a different color and finished with shiny and matte
surfaces, including green, yellow, blue, and purple
Poissons
Lalique, Paris
Late 20 centuryth
Each signed ® Lalique France
Height of each: 1 7/8 inches Length of each: 2 inches
Condition: Good.
Photos 859 and 860
SAMPLE REPORT
USPAP DOES NOT DICTATE FORM, FORMAT OR STYLE
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34
APPRAISED CONTENTS - SON’S BEDROOM
Article
Number
Appraised
Value
Description
17. $ 000.00
Piece
Woman brushing hair*
A depiction of a nude woman brushing her hair, executed in a
hazy manner with a monochromatic palette
Oil on masonite panel
Stilson (American, 20 century)th
Executed 1969
Signed ©Stilson and dated 1969 at lower right
Work size: 30½ x 24¼ inches
Framed size: 35 x 29 inches
20 century giltwood frame with orange linen-covered matteth
Condition: Good.
Valuation: Decorative value.
Photos 862 and 864
18. $ 000.00
Piece
A cream and pink side table with a rectangular inset top with
canted corners over an open base, fitted with one (1) glass
shelf, the whole decorated with a vinylized and impressed
basketweave design
Third quarter 20 centuryth
Height: 26 inches Width: 26 3/8 inches Depth: 22¼ inches
Condition: Good.
Photo 861
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USPAP DOES NOT DICTATE FORM, FORMAT OR STYLE
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APPRAISED CONTENTS - SON’S BEDROOM
35
19. $ 000.00
Piece
NAME
A colored print depicting a standing Native American in colorful
costume holding a rifle and walking on a path between a tree
and a boulder, mountains in the background
Lithograph printed on paper with handcoloring
Originally painted by Charles Bird King (American, 1785 - 1862)
Drawn, printed and colored at J. T. Bowen’s, Philadelphia
Published by Daniel Rice and James G. Clark, Philadelphia, 1843
Work size: 16 3/4 x 11 inches (sight)
Framed size: 26 x 20 inches
20 century carved giltwood frame with French matte andth
plexiglass plate
Provenance: C. M. Leonard Antiques. New York
Sale - April 18, 1995
Condition: Good.
Note: Work is from an original edition of the History of the
Indian Tribes of North America by Thomas L. McKinney, of the
Indian Department, Washington, and James Hall of Cincinnati.
The three volume book was originally published, 1836-1844. It
contained 120 hand-colored lithographed portraits by J. T.
Bowen. The lithographs are based on oil paintings by Charles
Bird King, who was employed by the War Department to paint the
Indian delegations visiting Washington. Most of his original
works were destroyed in a fire at the Smithsonian. Thus their
appearance in McKinney and Hall's Indian Tribes is the only
record of the likenesses of many of the most prominent Native
American leaders of the 19 century. McKinney was the firstth
Director of the Bureau of Indian Affairs, and he provided the
biographies, many based on his personal interviews. Hall, an
Illinois lawyer and journalist, wrote the general history of
the North American Indian.
Valuation: The retail market is the more appropriate market
for Charles Bird King prints. A discount of 30% from the
retail price of this print is applied.
Photos 894 and 895
??
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USPAP DOES NOT DICTATE FORM, FORMAT OR STYLE
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36
APPRAISED JEWELRY
Article
Number
Appraised
Value
Description
20. $ 000.00
Piece
An 18 Kt. yellow gold gentlemen’s oyster perpetual day/date
wristwatch having a circular silver dial with stick chapters
surrounded by a fluted bezel, attached to an oyster bracelet
with a smooth and textured surface; automatic movement
Rolex Presidential
Condition: Good.
Valuation: Similar watches sell at Christie’s and Sotheby’s,
New York for $---- to $----.
Photos 57, 58, 59, and 60
??
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37
SOURCES
THE FOLLOW ING REFERENCE BOOKS AND PRICE GUIDES W ERE CONSULTED:
_____. American and European auction catalogues, 1987 - 2008.
_____. Annual Guide to Galleries, Museums, Artists. New York: Art in America, 1994 -
2008.
_____. International Hallmarks on Silver. Paris: Tardy, 1985.
_____. The 1950s / Modern Furniture Price Guide: Auction Results from the 1991-1999, vol.
2. Cincinnati, Ohio: Treadway Gallery Inc., 1999.
_____. Uniform Standards of Professional Appraisal Practice and Advisory Opinions. 2008-
2009 Edition. Washington, D.C.: Appraisal Standards Board, 2007.
_____. Woodstock's Art Heritage: The Permanent Collection of the Woodstock Artists
Association. Historical survey by Tom Wolf. Woodstock, New York: Overlook Press, 1987.
Agee, William C, et. al. America Gone Modern From the Twenties to the Sixties. New York:
Spanierman Gallery, LLC, 2000.
Andacht, Sandra. Treasury of Satsuma. Des Moines, Iowa: Wallace-Homestead Book Company,
1981.
Andrews, John. Victorian and Edwardian Furniture Price Guide and Reason for Value.
Suffolk, England: Antique Collectors' Club, 1994.
Andrews, John. British Antique Furniture Price Guide and Reason for Value. Suffolk,
England: Antique Collectors' Club, 1995.
Archibald, E. H. Dictionary of Sea Painters. Second edition. Suffolk, England: Antique
Collectors' Club, 1989.
Aschenbrenner, Erich. Oriental Rugs Persian. Volume 2. London: Antique Collector's
Club, 1996.
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38
THE FOLLOW ING ARE SOM E OF THE GALLERIES, EXPERTS, AUCTION HOUSES,
AND RETAIL SHOPS W HICH W ERE CONSULTED:
A and J Speelman Ltd., Oriental Art, London
Adobe Gallery, Santa Fe
Altermann Galleries, Sante Fe
Antiquariat Adina Sommer, Munich
Asprey and Garrard, New York
Auffray, New York
Baccarat, New York
Bolland and Marotz, Bremen
Bonham's, Knightsbridge
Briest, Paris
Bruun Rasmussen, Copenhagen
Bukowskis, Stockholm
Butterfield’s and Bonhams, San Francisco
Christie's, New York, Los Angeles, London, South Kensington,
Melbourne, and Amsterdam
Christie’s East, New York
Dalva Brothers, New York
Daphne Rankin, London
Karl Springer, New York
Kennedy Galleries, New York
Ketterer, Munich and Berlin
King Galleries, Scottsdale
Kunsthallen, Copenhagen
Kunsthaus am Museum-Carola van Ham, Cologne
Kunsthaus Lempertz, Brussels
Lalique, New York
Lillian Nassau, New York
MacConnal-Mason Fine Paintings, London
Mallett and Son Antiques Ltd., London
Manhattan Art and Antiques Center, New York
Neumeister Kunstauktionen, Munich
Wood and Hogan, New York
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Estate of Mr. Zen Date of Death 02/02/08"Fair Market Values” Self-Contained Estate Appraisal Page 39 of 39
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THE FOLLOW ING ARE SOM E OF THE INTERNET SITES W HICH W ERE CONSULTED:
www.americansportingart.com
www.anri.com
www.arnoldstobacco.com
www.artfact.com
www.artnet.com
www.artprice.com
www.askart.com
www.asprey.com
www.artinfo.com
www.baccarat.com
www.canyonart.com
www.collectmodelcars.com
www.danburymint.com
www.decorati.com
www.ebay.com
www.geocities.com
www.gordonsart.com
www.groveart.com
www.herndonfineart.com
www.mataharicollectibles.com
www.newel.com
www.replacements.com
www.rogallery.com
www.ross-simons.com
www.someonespecial.com
www.steuben.com
www.tiffany.com
www.waterford.com
Appraisal Writing Guidelines
The appraisal report which you present to your client is the concrete evidence of your academic expertise, your professionalism in the field, your knowledge of the current standards and regulations, and your ability to create a substantive and credible document. The appraisal report is essentially your only work product and remains available for inspection for an unrestricted period of time. The appraisal report may be utilized in a wide variety of contexts, depending on its purpose: an insur-ance schedule; the settlement of a damage/loss claim; a determination of tax liability for the IRS in an estate situation; a determination of tax relief for the IRS in a non-cash charitable contribution; the basis for an equitable distribution; the basis for disposition decisions; the basis for a collateral loan decision to illustrate just a few of the possibilities. The appraisal report is, in addition to a professionally correct document, the primary factor on which your reputation in the field is determined, your best advertisement, a basis for referrals, and a protection from ethical and/or legal complaints. It should be a product in which you can take pride. The appraisal report should allow the reader to follow the appraiser in the valuation process, in a reasonable and logical manner. The document should present, in articulate and precise language: (1) the purpose, terms, approach, and marketplace context in which the value is determined;(2) the extent of examination, by whom, and any special circumstances regarding examination (if any); (3) a full description of the object, appropriate to its value, importance and the purpose, applying the evaluative experience of the appraiser; (4) the data and sources examined, and the analysis which was applied, and the value conclusion. The narrative must be cogently and intelligently written with no loopholes.
According to USPAP, the appraisal document is acceptable when it meets or exceeds (1) the expectations of parties who are regularly intended users for similar assignments; and (2) what an appraiser’s peers’ actions would be in performing the same or a similar assignment. Each valuation process is unique. The appraiser should be satisfied that the report anticipates and answers any questions that may be raised.
I. Elements Required for a Correctly Prepared Appraisal
1. Name and Address of Client(On a rare occasion, a client may prefer to remain anonymous. This is permitted when the appraiser has documented the name and address in the client’s work file)
2. Name, Contact Information and Qualifications of the AppraiserStatement of professional qualifications - curriculum vitae 3. Signed CertificationStatement that the facts contained in the report are true and correctStatement that the reported analysis, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are the appraiser’s personal, impartial, and unbiased professional analyses, opinions, and conclusions Statement of disinterest (or stated interest) on the part of the appraiser (no financial or personal interest regarding the property or the parties involved) Statement of no bias on the part of the appraiser (regarding the property or the parties involved)Statement of fee structure (basis for charge; that it is not contingent upon the value of the objects appraised)Clear division of appraisal when one, or more than one, appraiser is involved, who did what (including inspection) and inclusion of all CV’sStatement of personal physical on-site inspection by the appraiser (or disclosure of other methods/circumstances)Disclosure of all parties providing significant assistance with the report or statement indicating that the appraiser is solely responsible for all information in reportStatement that appraisal is prepared in accordance with USPAP including date of USPAP followedAll relevant signatures
4. Scope of Work (must be clearly and conspicuously noted)Determine, perform, and disclose the Scope of Work in the report and identify:The problem to solveGeneral category of items to appraise (i.e., Fine art, household contents, Modern prints, etc.) The clientThe ownerIntended use of the appraisal (See Purpose of the Appraisal, below)Intended user(s)Type of value (See Type of Valuation Used and Defined, below) Definition of valueSource for definition of value Approach to value (See Approach to Value, Used and Defined, below)Marketplace (See below)Effective date of valuation (See below)Assignment conditions (i.e., adequate time to research; adequate lighting; provenance supplied by client; etc.)The extent to which the property is identified (Title search (Art Loss))The extent to which the property is inspectedSpecify the examination procedure followed(i.e., examined under incandescent light and daylight; used a 10X magnification loupe, etc.)Specify any normal examination procedure that has been excluded (i.e., did not remove from wall, did not examine under a black light, did not examine clock works, etc.)The type and extent of data researchedThe type and extent of analysis applied at the arrived valuationsUSPAP compliancyType of report (See below)Updates
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5. Purpose of the Appraisal (must be clearly and conspicuously noted)InsuranceDonationEstate with a surviving spouseEstate with no surviving spouseTax lossEquitable distributionEstate planningInventoryDamageLossCollateralLiquidationNet worthOther
6. Type of Reports (must be clearly and conspicuously noted)Self-containedSummaryRestricted use
7. Approach to Value Used and Defined (each method must be mentioned and discussed as to its applicability in this particular appraisal situation)Market Data Comparison ApproachCost ApproachIncome Approach
8. Type of Valuation Used and DefinedRetail Replacement CostRetail valueFair Market ValueMarket ValueMarketable Cash ValueLiquidation valueSalvage valueReplacement Cost New
9. Marketplace in Which Valuation is Applied (location and type)Auction (high end, mid range, etc.)RetailWholesaleThrift shops; consignment storesGeographic location
10. Relevant Dates (note whether current, prospective, or retrospective)Date of on-site inspection Effective/valuation date of the appraisal (assigned or specific)Date appraisal report issuedOther dates as applicable:date of deathdate of donationdate of separationdates of researchrevised date
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11. Description of Appraised ObjectsItemQuantity (if pair, set, etc.)Country/region of originMediumDate(s)/period of creationMarkings (e.g. signatures, maker’s marks, manufacturer’s marks, inscriptions) Full detailed description (including all observable physical characteristics) Dimensions (measurements appropriate to the object i.e., an appraiser would weigh a piece of silver, but not a painting)Condition (a representation as to condition must always be included and qualified, whether per object or per group, not as a general statement for the entire report)Frame description and conditionStatement of value as appropriate to the purpose of the appraisal (can be a firm statement, or a range of values, or a statement as to greater than or less than)
12. Disclaimers, Extraordinary Assumptions, Assumptions, LimitationsStatement in belief of authenticity (only that the objects appraised correspond to the descriptions provided in the appraisal); but that the appraisal is NOT a certificate of authenticityStatement of the number of pages in the appraisal
13. For Appraisals Relating to IRS Usage (Estate (E) or Donation (D))Statement that appraiser has not been disqualified by the IRS (E and D) Statement that the appraiser acknowledges that the appraisal will be used in connection with a tax return or claim for a tax refund and that a substantial or gross valuation misstatement resulting from the appraisal may subject the appraiser to a civil penalty (D)Appraiser’s Tax ID# (E and D)Statement of the appraiser’s qualifications specific to the item(s) appraised (D) Statement of how the objects were acquired and prices paid (if known) (D)Completion of IRS form 8283 (D - separate from report)
14. Additional Description (if applicable)Name of artist/craftspersonName of historical style/school of workTitle of workProvenanceCatalogue raisonné number or other referenceFrame informationExhibition historyPublication historyOther notes (importance of work, one of a pair, etc.)
15. Support for Valuation ConclusionsState of the market discussion/market analysisMaterial provided by consultants (identified)
16. Support for Valuation Conclusions (if applicable)Comparables (fully presented and annotated as appropriate)Biography of the artist/craftsperson/schoolRelated analysis and discussion of the object/artist/school, etc.
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17. General FormatHeader/footers on each page should include all relevant informationAppraiser’s name and contact informationClient’s nameType of reportPurpose of the appraisalValuation system usedEffective date of valuationPagination indicated on each page (e.g., ‘1/50’ or ‘page 1 of 50’)Statement of the number of photographs (If possible, the numbers should correspond to the item number; if the photos are under separate cover, state the page number where the photo is located (e.g. Item #4, Photo page 1/50).
II. Additional Review InformationThe structure of the report should be as “user friendly” as possible, logical and sequential in the presentation of the valuation conclusions and precise in the value statements. The items should be numbered, keyed to the photographs (if included) and organized by both location and/or category, as appropriate. Check that all the Elements of a Correctly Prepared Appraisal have been incorporated within the report and that the appraiser’s credentials are included with every report. According to the 2006 USPAP, the work file for each appraisal must contain the name of the client and the identity, by name or type, of any other intended users; true copies of any written reports, documented on any type of media; summaries of any oral reports or testimonies; and all other data, information and documentation necessary to support the appraiser’s opinions and conclusions, and to show compliance with the Standards. The appraiser must retain the entire work file for at least five (5) years after prepara-tion or at least two (2) years after final disposition of any judicial proceeding in which the appraiser provided testimony related to the assignment, whichever period expires last. As quoted from the 2006 USPAP, the content of an appraisal report (self-contained or summary) must be consistent with the intended use of the appraisal and, at a minimum, include (describe or summarize) information sufficient to identify the property involved in the appraisal including the physical and economic property characteristics relevant to the assignment and describe (or summarize) sufficient information to disclose to the client and any intended users the scope of work used to develop the appraisal. The appraiser has the burden of proof to support the scope of work decision and the level of information included in a report.
III. Comparables: Purpose and StructureIt is NECESSARY to include comparables in the following reports, both of which must follow IRS guidelines:Appraisals for estate purposes, for any object valued at $5,000 or more, for one which such documentation would be useful, or for one where the valuation is unusual to the general marketplace. (Note: The higher the value, the more detail is required in a comparable analysis.) Appraisals for non-cash charitable contributions (donation purposes.)
It may be USEFUL to include comparables in the following situations:For any appraisal purpose, if, in the appraiser’s judgment, the value of the object requires annotation and support. Providing additional data may be determined by provenance, condition, regionalism, academic interest, or even the expectations of the client.For any appraisal purpose, if the value cited is substantially different from what a knowledgeable person would anticipate, and thus requires explanation. When the expectation seems that appraisal will be litigated.
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Comparables based on auction sales must include:An indication as to whether the buyer’s premium has been included; or the price given is the hammer price. N.B. The IRS considers the buyer’s premium to be an integral part of the fair market value (1992 TAM Ruling).All relevant information (as appropriate) including date of sale, auction house and location, sale number, sale name if a single owner or important collection, lot number, description of item [title, medium, size, signature, etc.], condition if noted, estimates, and sale result [price realized, bought in, withdrawn, or sold subsequent to the auction by private treaty.] Comparables based on private sales must include:The name and location of the dealer, gallery, show; some annotation as to the dealer’s role in the marketplace; and, if possible, the buyer [private collector, museum, etc.; however it would be highly improper for a dealer to disclose the name of a private buyer (Gramm, Leach, Bliley Act of 1999).] The dollar amount of a sale actually realized. If the only values obtainable are those at which similar/same pieces were offered, they may be indicated, if so described. It must then be mentioned that the marketplace was, apparently, resistant at those prices.
All comparables cited should be as recent as possible, and as close to the subject piece in time, form, style, medium, quality, condition as possible. All appropriate sales should be cited and then annotated to explain differences, and the reasoning to support the appraiser’s valuation conclusions. The process by which the appraiser gathered data, what data was available and considered for the appraiser’s analysis, and what factors were relevant to the evaluation should all be readily apparent to the reader.
IV. Review of the Basic Appraisal Report FormatThe appraisal report should be a formal, organized document. The appraiser must remember that, although each assignment is unique, there are essential components that must always be included, as per the “Elements of a Correctly Prepared Appraisal.” In addition, there are other structural and informative sections that should/must be included for specific types of appraisals. Cover Page Table of Contents Valuation Summary Certification PageScope of WorkMarket AnalysisDisclaimers & Limiting Conditions PageInventory/Narrative SectionSources of Data Appraiser’s Credentials ComparablesArtist/Craftsperson biography Discussions of a specific object/artist, etc. Selected BibliographyGlossaryIndex of Artists Consultants’ Credentials Photographs/Photocopies
The technical and aesthetic presentation of the report should be attractive and professionally presented in a form that will withstand mailing and handling. Neither USPAP, the IRS, or the AAA dictate form, format, or style of appraisal report writing, although each have specific elements and requirements to include in a properly prepared appraisal report. Develop your own templates and narrative style. Refrain from using forms or mass-produced boilerplates. The appraiser’s authority is evidenced by the language, cogent organization, and sequential development of the report. © Appraisers Association of America, Inc., 2007
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Elements that must be in every report
(not necessarily in this order)
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APPRAISAL TERMS AND DEFINITIONS ACTUAL CASH VALUE (ACV):
This term refers to Market Value and is generally synonymous with payment restricted to cash. Some insurance
policies also define ACV as the replacement cost minus any depreciation.
ADMINISTRATOR:
This is someone appointed by the court if the decedent died without a will. If no executor is named in the will or
if the person named cannot or will not serve.
AFFIDAVIT:
An affidavit is a statement used in an appraisal which explains what was done in the appraisal. An affidavit is
frequently called the appraiser’s certification.
ALTERNATE VALUATION DATE:
A term most frequently identified with estate appraisals. At present it is the date six months to the day after
the date of death on which the fiduciaries of the estate can chose, legally, to have the estate valued rather
than the date of death. In this manner, the IRS allows the estate the choice of a date which may be more
advantageous in the event that the market or price for the objects in question has changed significantly,
usually declining in value materially, from the date of death to the date six months after the death. If the
alternate date of death is chosen, then all items in the estate must be value on that alternate date, not just the
personal property.
ANTIQUE:
As defined by the United States Customs Department, any object that is 100 years old or older is an antique.
But the term is broadly interpreted with its definition varying from product to product and year to year.
Generally speaking, the following are the most accepted definitions: 1.) An item collected or desirable due to
its rarity, condition, utility or some other unique feature that is older than 100 years. Motor vehicles, in
contrast, are considered antiques in the US if they are older than 25 years and some electronic gadgets of
more recent vintage may be considered antiques; 2.) Ancient art such as sculptures, gems, medals, seals
collected from Greek and Roman civilizations.
APPOSITE VALUE:
This is a value that is fitting, suitable and appropriate for an object.
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APPRAISAL:
As defined by the Appraisal Standards Board (ASB) in the Uniform Standards of Professional Appraisal Practice
(USPAP) is “the act or process of developing an opinion of value.” According to the ASB, value can “be
numerically expressed as a specific amount, as a range of numbers, or as a relationship (e.g., not more than,
not less than) to a previous value opinion or numerical benchmark (e.g., assessed value, collateral value).” It
should be noted that USPAP states that calling an appraisal something else such as “valuation” or “valuation
estimate” does not remove it from being considered as an appraisal if an opinion of value is given. The
document contains a valuation executed for a specific purpose and follows specified guidelines.
THE APPRAISAL FOUNDATION:
This is an independent organization established in 1987 by the US government with members from various
appraisal organizations. The Foundation now receives federal funds and is empowered by Congress to
establish standards for all aspects of the appraisal profession.
APPRAISAL REPORT:
This is the actual document in which the opinion of value is stated. Appraisal reports can be written, which is
always preferable, or oral. Both, according to USPAP, are subject to specific development and reporting
requirements.
APPRAISAL METHODOLOGY:
This is the procedures and rules for executing properly prepared appraisal reports.
ARBITRATION:
This is a way to settle a dispute. Arbitration is a proceeding in which a dispute is submitted to one or more
impartial parties for a binding determination made by the arbitrator. Arbitration is usually quicker, simpler and
cheaper than litigation but the perceived disadvantage is that there is no appeal. With a few narrow
exceptions, like fraud, there is no way to appeal an arbitrator’s decision.
APPRAISER:
This is the individual who values the items and prepares the appraisal document.
APPRECIATION IN VALUE:
This is an increase in value over time.
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ART ADVISORY PANEL:
The IRS Art Advisory Panel is composed of several generic groups of professionals: IRS staff appraisers,
museum directors and curators, art and antiques dealers, and auction house employees. The full panel
generally meets twice a year, while the IRS staff appraisers work full time reviewing appraisals that are
submitted to the IRS and preparing those appraisals deemed appropriate for submission to the whole panel.
The IRS appraisers are full time government employees while the other members of the panel serve two year
terms. Generally speaking, the Panel reviews objects valued individually above $20,000. However, the Panel
has been known to review as well objects valued considerably under that amount.
ASSEMBLED, ASSOCIATED OR MARRIED PIECES:
This term is used to describe a piece of furniture or other piece of decorative arts which has been composed of
parts from various pieces of furniture or woods from the same or other periods, e.g., a dressing table or lowboy
with a chest added to the top to make it into a tall chest or highboy; a refectory table with a 17th century base
and an 18th century top from another table. This is beyond a mere restoration and is almost an attempt at
deception unless the marriage is clearly identified as such when sold.
ASSUMPTIONS AND LIMITING CONDITONS OF THE APPRAISAL:
This is a listing in the appraisal document of those elements detailing the parameters of the appraisal
document, the responsibilities of the appraiser and the information and procedures for which the appraiser
does not assume responsibility. It is generally appropriate for the appraiser to explain why he/she has chosen
to exclude specific elements as part of the description of limiting conditions. According to USPAP, the appraiser
is required to identify and explain the circumstances and appropriateness of any assumptions, extraordinary
assumptions, hypothetical and limiting condition that have been used in an appraisal assignment.
AUCTION REPLACEMENT VALUE (ARV):
This term, usually for insurance purposes, is defined as a reasonable amount in terms of US dollars which
would be required to replace a property with another of similar age, quality, origin, appearance, provenance
and condition within a reasonable length of time in an appropriate and relevant auction market. Since the
client regularly and routinely buys at auctions, the appraiser rarely examines the retail market for this
valuation. When applicable, sales and or import tax, commissions and or premiums are included in this
amount.
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AUTHENTIC:
This term is used to describe pieces of furniture, decorative arts or fine arts which are of the period, right and
have no restorations or alterations.
BLANKET POLICY:
This term is used by insurance companies when articles of personal property are grouped together and given a
total value. A blanket policy may be based upon an appraisal or it may be a value the insured requested.
Typically a blanket policy is subject to limitations in values and carries a higher premium than one where items
are scheduled individually.
BLOCKAGE DISCOUNT:
This principle is applied to the valuation of large groups of similar and like items which, if sold during a limited
period of time, would result in a depression of the prices one might expect if the items were sold separately in
an ordinary market cycle. Consequently, blockage discount is narrowly defined as the percentage the appraiser
would apply to reduce the total valuation to compensate for this situation. Blockage discounts are normally
applied to estate valuations, especially in the case of artists’ estates where large inventories of the art works of
single artists must be valued. However, all appraisers should consider the applicability of blockage discounts
when valuing large groups of similar and like items. Blockage is a discount or reduction in value necessary to
allow a large group of similar objects to be absorbed by the market or sold at a specific date of valuation.
Sometimes it may be necessary to offer an economic inducement in the form of a reduced price to stimulate
the potential buyers in a given marketplace to purchase all the objects being offered for sale at one time. For
example, one may have to offer two for the price of one, four for the price of one, one hundred for the price of
one or whatever it may take to sell all the works. The term blockage discount comes from the world of finance
where shares in publicly traded companies are frequently offered at discounted prices when the volume of the
offering is too large for the market to absorb it at the full, undiscounted, price.
BURNT:
When an item is presented at auction and fails to sell, it is said to be burnt.
BUYER’S PREMIUM:
This is the percentage of the bid or “hammer” price paid by the buyer to the auction when purchasing an item.
The fee ranges between 5 and 25%. See also Seller’s Premium and Hammer Price.
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BUY IN (BI):
This occurs at auction when an object does not meet its reserve price and fails to sell.
CAPITAL GAINS TAX:
This tax is assessed on profits realized from the sale of a capital asset such as stock, bonds or personal
property.
CATALOGUE RAISONNE:
This is a scholarly catalogue which should include all the known works or all the known works in a specific
medium by the artist at the time of compilation of the book. Essential information identifying the works are
included making this the definitive reference book.
CAVEAT EMPTOR:
“Let the buyer beware.” This term means that the seller is not held responsible for the quality or authenticity of
the goods being sold.
CERTIFICATE OF AUTHENTICATION/AUTHENTICITY:
This is an official document which certifies that the piece in question is right and of the period and by the artist
designated. Some states including New York require specific information be included on a Certificate of
Authentication.
CERTIFIED APPRAISAL:
This is the document prepared by a certified member of an appraisal organization.
CERTIFIED APPRAISER:
One who is awarded this designation by a testing and self-regulating appraisal organization. For the AAA, the
appraiser is to pass the certification examination in appraisal theory and methodology and the test in an area
of specialization.
CIRCA:
“About” in reference to age; e.g. circa 1920 when describing the age of an object means that it was made
around that time period give or take 10 years.
CLEAR TITLE:
Good ownership one free from encumbrance, obstruction, burden or limitation
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COLLECTIBLE:
This term usually describes any item that has been mass produced and usually machine manufactured. Today
collectibles are typically manufactured items designed specifically for people to collect such as sports’ cards
and beanie babies.
COMPARABLES:
Finding similar and like objects to the one being appraised is the most commonly applied approach to
evaluation. An examination and analysis of the sales figures for similar works or comparable objects allows
the appraiser to arrive at the appropriate appraised value for the one under consideration. These figures are
mandatory for most donation appraisals and may be provided by the appraiser in other situations when the
appraiser judges them to be necessary.
CONSERVATION:
This is the treatment and preventative care of an object so that its condition does not deteriorate and the
object can remain stable. This is the preservation of a work of art involving careful maintenance and protection
of the item using materials and procedures which will have no adverse affects on the piece. See PRESRVATION
and RESTORATION also.
CONSULTING EXPERT:
This person is an appraiser who provides technical expertise and background knowledge to the attorney and
client in a litigious situation. Such expertise may be related to the quality of the object, the value of the object
or the methodology of the opposing appraiser. The work of the consulting expert is considered privileged and is
not discoverable in court because it falls under the Attorney Work Product Privilege.
COURT CASES:
When the taxpayer has been unable to negotiate a compromise with the IRS the taxpayer may chose to litigate.
Taxpayer suits against the IRS have the right to be pursued in all parts of the judiciary system. They can be
appealed up to the Supreme Court. While the decisions reached in these cases are specific to the individual
cases, they may cause the IRS to modify its procedures and requirements. All appraisers would be well
advised to study the relevant cases carefully since the decisions reached may cause the appraiser to modify
the way IRS appraisals are formulated and appraisal reports are written. Court cases are also sometimes
involved with divorce, insurance or damage and loss of value appraisals when the parties cannot agree on
valuation or any other matters under discussion.
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COVER LETTER:
A cover letter is a letter accompanying the appraisal which does NOT include the value of the appraised items.
CRAQUELURE:
This is the result of the uneven movements of canvas caused by the natural shrinking of the medium during
the aging process. Craquelure usually appears on the surface in a spider web like series of cracks. The surface
can be stabilized by relining the canvas and restoring the cracks.
CRAZING:
This is the fine and random cracking extending only through the surface of pottery, porcelain, stone or
concrete. The cracking can appear along or perpendicular to the length in polygonal shapes or as random
spider webs. Crazing is due to differential contraction between the surface and interior sections often due to
changes in temperature. Crazing has no structural or durability significance and does not by itself constitute a
cause for rejections. It can, however, mark the beginnings of disintegration. All ceramic and concrete products
and many natural stones under varying conditions of moisture and temperature are frequently subject to
crazing. In some Asian potteries and porcelains crazing is produced in a foreseen, admired and regulated
manner.
CULTURAL PATRIMONY:
These are objects involved in the Holocaust, items from past and present wars which were pillaged or removed
from their homeland or owners and those objects taken and robbed from underdeveloped and poor countries.
Today there is an effort to prevent the continuous exploitation and exporting of these treasures.
DEPRECIATION IN VALUE:
This is a decrease in value over time.
DIMS:
This is an abbreviation for dimensions.
DISCLAIMER:
The disclaimer is an explanation of facts either contained in the appraisal for which the appraiser does or does
not “disclaim” or deny responsibility. This is a listing of elements for which the appraiser does not accept
responsibility.
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DISCLOSURE/FULL DISCLOSURE:
Disclosure is the passing of information that is secret, not previously known (i.e., revelation) or which is
believed not to have been known previously. In an appraisal situation, this would include disclosing
confidential information shared by the client with the appraiser.
Full Disclosure, on the other hand, refers to the appraiser’s obligation to state all the work that was done or not
done in generating the appraisal report or any other factors which may, at a later date, alter the valuation
conclusion in the report.
DROIT MORAL:
French term for giving the authority to authenticate works of art, literally “moral right.”
DUE DILIGENCE:
A measure of prudence or activity that is properly expected from and ordinarily exercised by a reasonable and
prudent person under the particular circumstances; not an absolute standard but dependent on the relative
facts of the particular situation. In an appraisal situation, this refers to the amount of work one would expect
an appraiser to perform in order to arrive at a credible conclusion.
ESCHEAT:
This is the common law doctrine that operates to ensure that property is not left in limbo and ownerless upon
the death of the owner. It can be the forfeiture of all property including bank accounts to the state treasury if it
appears certain that there are no heirs, descendants or named beneficiaries to take the property upon the
death of the last known owner.
EQUITABLE DISTRIBTUION:
This term is generally used in a divorce situation or in the dissolution of a domestic partnership and is a fair
division of assets between two or more people. It is the process through which the assets of the partners or
family members are divided in a manner which is equitable based on several factors including the appraised
values of the objects in question.
EXECUTOR OR EXECUTRIX:
This is the person named in a decedent’s will to administer the estate and distribute the properties as the
decedent directed and in an equitable manner.
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FA (FINE ARTS):
This is the acronym for Fine Arts and may be required by insurance companies to designate those objects on
an insurance appraisal which include decorative art and antique objects such as furniture, metals, textiles,
drawings, paintings, prints and sculpture as opposed to Fine Arts Breakable (FAB) or Sterling Silver (SS).
FAB (FINE ARTS BREAKABLE):
This is the acronym for Fine Arts Breakable objects and may be required by insurance companies to designate
those objects on an insurance appraisal such as glass, porcelain, marble and mirrors as opposed to Fine Arts
(FA) or Sterling Silver (SS) objects which may be subject to a higher insurance premium.
FAIR MARKET VALUE (FMV):
FMV is usually for IRS purposes and is defined by IRS Section 1.170 and 20.2031 (b) as “the price at which
the property would change hands between a willing buyer and a willing seller, neither being under any
compulsion to buy or to sell and both having reasonable knowledge of relevant facts.” According to Technical
Advisory Memorandum 9235005 (May 27, 1992), fair market value should include the buyer’s premium. IRS
Section 20.2031 (b) continues “the fair market value of an item of property includible in the decedents’ gross
estate is not to be determined by a forced sale price. Nor is the fair market value of an item of property to be
determined by the sale price of that item in a market other than that in which such item is commonly
appropriate. Thus, in the case of an item of property includible in the decedent’s gross estate which is
generally obtained by the public in the retail market, the fair market value of such an item of property is the
price at which the item or a comparable item would be sold at retail.” (Treasury Regulation Section 1.170A –
13) (3) (1988) it should be noted that the IRS has changed the definition slightly in various sections of the
Revenue Code and other printed literature. In addition, Pamphlet 561 has also added the following to the
definition: “If you put a restriction on the use of property you donate, the FMV must reflect that restriction.”
FAKE:
This is an object that has been made to deceive and is sold as something that it is not.
FINE ARTS INSURANCE POLICY:
An insurance policy which covers the fine arts contents of a home. Fine arts are generally defined broadly and
can include not only two-dimensional art and sculpture but also decorative arts, furniture and collectibles.
These policies may require individual scheduling of items or a blanket policy to cover all the items. Fine arts
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insurance policies generally vary from insurance carrier to carrier; one would be well advised to examine each
policy closely.
FEDERAL TAX REGULATIONS:
These regulations are published by the Department of Treasury which has oversight authority over the Internal
Revenue Service. The regulations are published from time to time to explain the tax law in the Internal
Revenue Code. It offers explanation and examples illustrative of the principles stated in the revenue code.
FORCED LIQUIDATION VALUE (FLV):
This is the lowest range “NET” value, usually for a quick and forced sale purpose. It is defined as “the most
probable price in terms of cash, or other precisely revealed terms, for which the property would change hands
if sold immediately, without regard to the relevant market place.
FORGERY:
This is a copy executed by someone other than the original artist with the intent to present the object as the
original. This is the generic term for both fakes and frauds.
FOXING:
Brown spots caused by acid on paper or textiles.
FRAUD:
This is a work of art which has been altered, misattributed or otherwise disguised or misrepresented to be what
it is not.
FRENCH GRID SYSTEM:
The name given to a system by which an object is divided into quadrants such as square inches or centimeters
and a value is assigned to an individual quadrant. Presumably the value of the whole can then be determined
by multiplying the number of quadrants by the value assigned to one unit. Appraisers of personal property are
discouraged from using this methodology unless a clear and compelling rationale for its use can be
established.
GOOD FAITH EXCLUSION:
This is an IRS term. Under the law governing donation appraisals, an appraiser who writes an appraisal which
is 150% above which the IRS determines as appropriate can be subject to sanctions. However, if the Director
of Practice determines that the appraisal report in question was written in good faith, the Director has the right
to exclude the appraiser from the specified sanctions.
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HAMMER PRICE:
This is the actual bid price at auction as the hammer falls and does not include the buyer’s premium. See also
Buyer’s Premium and Seller’s Premium.
HIGHEST AND BEST USE:
The term is commonly used in real estate property appraising (See Sacramento Southern Railroad Company vs.
Heilbron, 156 Cal 408) and has been carried over by some into the realm of personal property. Basically the
term means that, when feasibly possible, one should evaluate personal property in the most appropriate
marketplace where it will bring the highest price. The term typically is defined as the examination of the use of
the property, which will result in its highest value. In an appraisal this cannot be merely theoretical but must be
realistic in that the use must be legal, physically achievable and financially feasible. Oftentimes personal
property appraisers refer to highest and best use as the highest attainable price for an object. Many personal
property appraisers have trouble with this definition and object to the carry over from real property. While the
concept of use may be appropriate for depreciable personal property such as machinery and equipment, it has
questionable relevance in the world of appreciable personal property such as art, antiques and collectibles.
While some appreciable personal property can be “used,” the motivation of the majority of collectors is not
structured by the object’s functional purpose but rather its aesthetic appeal. With this in mind, it has been
argued that one does not begin to apply a term which is relevant to exceptions but rather terms applicable to
the majority of situations are more appropriate. It has been suggested that the term “highest attainable price”
may be the better term for appreciable personal property.
HYPOTHETICAL APPRAISALS:
This is the type of appraisal done when the item is no longer in the possession of the owner because of a fire,
flood or other loss. When the appraiser cannot examine the object or is only given photographs of the non-
existent object that the appraiser states that the appraisal is hypothetical or written on the basis of the
information supplied usually by the client. The appraiser’s report is based upon a supposed situation or group
of assumptions.
HYPOTHETICAL CONDITIONS:
According to USPAP, the definition of a hypothetical condition is that which is contrary to what exists but is
supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts
about physical, legal or economic characteristics of the subject property or about conditions external to the
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property such as market conditions or trends or about the integrity of data used in an analysis. Appraisals of
damaged objects or appraisals done from a photograph used hypothetical conditions. A hypothetical condition
may be used in an assignment only if 1) the use of the hypothetical condition is clearly required for legal
purposes, for purposes of reasonable analysis or for purposes of comparison; 2) the use of the hypothetical
condition results in a credible analysis and 3) the appraiser complies with the disclosure requirements set
forth in USPAP for hypothetical conditions.
IMPAIRED FAIR MARKET VALUE:
Putting a restriction on the use of the property being donated implies that the fair market value is restricted
and reduced.
IN THE STYLE OF:
Means that an item is not of the period in which it was supposed to have been made but rather was made at a
later time as a copy of the earlier piece.
INPAINTING:
Similar to overpainting, this is a technique commonly used by conservators to unify a painting which has
suffered paint loss. Inpainting is paint applied over paint losses on a canvas or other media.
INTERNAL REVENUE CODE:
This is the tax law which has been structured and passed by Congress and signed by the President of the
United States and remains the ultimate authority on tax matters until it is changed or amended by Congress.
Internal Revenue Regulation 1.170.A relates to Income Tax Charitable Deductions and allows as a deduction
any charitable contribution which is made during the taxable year. Section 1(c) (1) provides that if a charitable
contribution is made in property other than money the amount of the contribution is generally the fair market
value of the property at the time of the contribution. Section 1(c)(2) provides that the fair market value is the
price at which the property would change hands between the willing buyer and the willing seller with neither
being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts. Section
13 states information regarding the record keeping and return requirements for deductions for charitable
contributions. For a deduction for a charitable contribution of property in excess of $5,000, Section 13(c)
requires that a qualified appraisal be prepared. Internal Revenue Regulation 20.2031 relates to the Estate
Tax. Section 2031 provides that the value of the gross estate of a decedent is determined by including the
value at the time of death of all property wherever it is situated. Section 20.2031-1(b) provides that the value
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of the property is includible in a decedent’s gross estate is its fair market value at the time of the decedent’s
death. Section 2032(a) provides that the executor may elect to determine the value of all the property in the
gross estate as of six months after the decedent’s death. This is known as the Alternate Date of Valuation.
Property distributed, sold, exchanged or otherwise disposed of within the six months after death must be
valued as of the date of distribution, sale, exchange or other means. Section 20.2031-6(b) provides that if
there are items among the personal effects or the household, articles with artistic or intrinsic value of a total in
excess of $3,000, an appraisal, under oath, must be filed with the estate tax return. Section 20.2031-6(b)
provides that if expert appraisers are employed, care must be taken to see that the appraisers are reputable
and of recognized competency to appraise the particular class of property involved.
JOINT AND FRACTIONAL GIFTS:
On occasion a number of people with equal or unequal ownership may donate an object or a group of objects
to a non-profit institution. Separate appraisal with separate values must be made for each of the donors.
LAUNDRY LIST:
This refers to a listing of object, similar to an inventory with no description and no information regarding the
object other than exactly what it is without any measurements. Listing objects in this cursory and seemingly off
hand manner is inappropriate for a professional appraiser to use when preparing an appraisal report.
LETTER OF TRANSMITTAL:
This letter, addressed to the client accompanying the appraisal, is a summary of the appraisal. This letter must
include all of the elements of USPAP including the name of the client, the purpose of the appraisal, the date of
the appraisal and the effective date of the appraisal, for whom the appraised is being executed, where and
when the property was seen, value and the definition of value used, the valuation methods and market
analyses, the number of items appraised, the total value of those items, the number of pages in the report, the
statement of disinterest on the part of the appraiser, the statement of the fee structure, the credentials of the
appraiser, the statement of compliance with a given code of ethics, a statement that the report can only be
presented in its entirety, a statement that the appraisal can only be used by the party or parties for whom it
was written and only for the stated purpose and the appraiser’s tax identification number (the latter only for
IRS donation appraisals). In the instance of a charitable donation appraisal, the appraiser may include the
name of the donee institution in the letter. All assumptions, extraordinary assumptions, hypothetical and
limiting conditions must also be included in a transmittal letter.
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LINED:
This term usually refers to a painting on canvas that has been supported by another layer of canvas due to the
deterioration of the original support.
LIQUIDATION VALUE:
This value is based on the price realized in a sale situation under moderately forced or limiting conditions and
under time constraints. This action may be initiated by the owner or a crediting institution. It is implicit in this
definition that Liquidation Value will generally be lower than other types of valuation.
LKQ (LIKE, KIND, QUALITY):
This abbreviation stands for the insurance terms LIKE, KIND, QUALITY and is the equivalent of an object with
comparable attributes.
Long Term Capital Gains Property:
This is an IRS concept used in conjunction with donation appraisals. It refers to property that has been held for
a designated period of time, after which the owner, upon donation, is entitled to a tax deduction based on the
object’s fair market value on the specified dates of valuation.
MARGINAL UTILITY:
In economics, under the mainstream assumptions, the marginal utility of a good or service is the increase in
usefulness obtained by consuming or using one more unit of that good or service. The concept is derived from
attempts by economists to explain the determination of price. The consumer’s decision to buy is not all or
nothing. Instead, it is a decision to buy or not to buy just one more unit. That means it is a mistake to look at
the total utility of the two goods as the basis for demand. The total utility is irrelevant to the decision to buy or
not to buy one more unit. What is relevant to any decision is what is gained or lost depending on how the
decision is made and only a part of the total utility is gained or lost as a result of the decision to buy or not to
buy one more unit of the good. Economists call the part of utility that is gained or lost in the decision to buy one
more unit the marginal utility
MARITAL DEDUCTION:
This is a tax provision which allows one spouse to transfer upon death an unlimited amount of property to
his/her spouse without incurring estate or gift taxes.
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MARKET VALUE (MV):
This value is the most probable price at which a property would sell in a competitive and open marketplace
where the sale needs to be consummated within a specified time frame and neither the buyer nor the seller
are under a compulsion to buy or sell. In addition, the object to be sold needs to have had sufficient market
exposure for a reasonable amount of time and payment is made in terms of cash in American dollars or
comparable financial arrangements are made. This term is essentially the same as fair market value except
this term does not have the provision stating that there is no compulsion to buy or sell within a specified period
of time. USPAP cautions appraisers to identify the exact definition of market value and its authority applicable
in each appraisal completed for the purpose of market value.
MARKETABLE CASH VALUE (MCV):
This is a net value usually for equitable distribution, resale or estate planning purposes. The value realized, net
of expenses, by a willing seller disposing of property in a competitive and open market to a willing buyer, both
being reasonably knowledgeable of all relevant facts, and neither being under constraint to buy or sell.
Marketable cash value takes into consideration insurance, dealer commissions, advertising, travel and
shipping expenses that may be involved in the sale. Implicit in this definition is that a sale takes place within
an agreed upon time period with a specified method of payment and that the sale take place in the best
available marketplace and that sufficient time is allowed to advertise the property properly. This term is usually
for equitable distribution, when tangible property may be exchanged for cash or other financial arrangements
or resale or estate planning purposes.
MARRIED, ASSEMBLED OR ASSOCIATED PIECES:
See ASSEMBLED (Above)
MEDIATION:
This is a way to settle a dispute and is a process by which parties to a dispute voluntarily select an impartial
third party to facilitate a resolution of the issues by the parties themselves. The need for mutual agreement is
deemed by some to be the major weakness in the mediation process. If one of the parties is unreasonably
stubborn, it will be difficult to reach an agreement.
MEDIUM:
There are at least four definitions of this term: 1.) The material the item is made from or the art is produced
upon and may include white or black paper, canvas, board, cel (acetate), sculptures; 2.) The specific tool and
16
material used by an artist, e.g., brush and oil paint, chisel and stone; 3.) The mode of expression used by the
artist, e.g., painting sculpture, the graphic arts; 4.) A liquid that may be added to a paint to increase its
manipulability without decreasing its adhesive, binding or film forming properties.
METHOD OF CONSTRUCTION:
This describes the way or ways in which an object has been made.
MICROSCOPY:
This is the in-depth microscopic evaluation of an object to determine its age and/or authenticity.
MINT CONDITION:
This term describes artwork or objects which are in the same condition as when they were originally finished,
printed, made. A term taken from coinage, this is the same condition as when it was minted.
MOST APPROPRIATE MARKET OR MARKETPLACE:
This is the venue in which the appraiser determines an object can be sold most easily and at the highest price.
Frequently in the case of personal property, where comparables are scarce, the most appropriate market can
be a combination of auction and private gallery sales.
NO COMMERCIAL VALUE:
This usually refers to an object, a group of objects for which it is not reasonable to assign a monetary value,
usually in estate situations and this might include the mattress and box spring.
OBJECT IDTM :
A generic classification methodology codified by the Getty Information Institute (Getty Museum) which lists nine
fields for the minimum description of all works of art.
OF THE PERIOD, RIGHT or CORRECT:
An object which has been made at or during the time ascribed to it.
OPPORTUNITY COST:
The advantageous price one would pay for purchasing in bulk.
ORDERLY LIQUIDATION VALUE (OLV):
This term, a low range net value usually for quick sales purposes, is defined as the most probable price in
terms of cash or other precisely revealed terms for which the property would change hands under required and
limiting conditions in an orderly manner and generally advertised and with knowledgeable buyers advised.
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ORPHAN:
This term refers to a single piece left from a set or a pair.
OVERPAINTING:
This explains when paint is applied to a painting over already dry areas of paint. Sometimes used to include the
original artist’s glazes and sometimes especially used in conservation, this term means only later restorers’
work. Overpainting is similar to inpainting (see above) except only inpainting fills in lost areas without covering
the original paint.
OXIDATION:
This is the binding of oxygen to a metal to form rust or the binding of oxygen to wood to darken it.
PARTIAL APPRAISALS:
This type of appraisal is an estimate of the value of the object or objects as requested by the client wherein the
client does not want a written professional, thoroughly researched appraisal document. The appraisal is
usually presented in a verbal form or the written document does not follow the proscribed proof of valuation or
the necessary boiler plate language to protect the appraiser. If the appraiser has an Errors and Omission
insurance policy, he/she may be in violation of that policy by presenting a partial appraisal. Using a POV,
discussed herein, is advisable. N.B. This is in strict opposition to USPAP.
PATINA:
This is the buildup of a film produced by oxidation on the surface of an object. This term also refers to the final
coating that is applied to a bronze by the artist or the foundry crafting the bronze.
PERSONAL PROPERTY:
Defined by USPAP as “identifiable tangible objects that are considered by the general public as being
“personal” for example, furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and
equipment; all tangible property that is not classified as real estate.” USPAP does not mention that there are
two general classifications of personal property: depreciable personal property or property that is expected to
depreciate in value over time, and appreciable personal property or property that has the potential of
increasing in value over time. Most machinery and equipment will depreciate in value once they are used,
while art, antiques and collectibles have the potential of increasing in value as the demand in the collectors’
marketplace increases as time goes by.
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PREMIUM:
See buyer’s premium, seller’s premium and hammer price.
PRESERVATION:
Related to conservation and restoration, preservation actions are taken to prevent further changes or
deterioration in objects, sites or structures. See CONSERVATION and RESTORATION also.
PRIMARY MARKET:
The primary market is one created either by the maker or agent of the maker when an object is sold for the
first time, usually in galleries or stores. The secondary market is the venue for the sale of an object between a
seller and a buyer with neither of having participated in the creation or initial sale of the object. In the instance
of multiples, a valid secondary market cannot exist while the maker or his agent retains a supply of the original
offering.
PRIMARY SOURCE:
This material, used in research and data comparisons, is from a first hand witness and includes auctions
attended, galleries, art fairs and stores visited and actual comparables witness by the appraiser.
PRIMARY WOOD:
A piece of period furniture is usually made from two different types of woods, the first being the primary wood
or the use of more of this wood which is seen on the outside as opposed to secondary wood, usually reserved
for use in the interior of the case.
PRINCIPLE OF CHANGE:
Change recognizes the shifting importance of other principles and explains the cycles of market development,
stabilization, decline and renewal
PRINCIPLE OF CONTRIBUTION:
This term often relates to the “good, better, best” qualities of an item
PRINCIPLE OF PROGRESSION:
This term refers to the increase in interest/value that lower valued items may realize from their association
with higher value items.
PRINCIPLE OF REGRESSION:
This term states that higher valued items may suffer a decrease in value from association with lower-valued
properties.
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PRINCIPLE OF CONTRIBUTION:
This term often relates to the “good, better, best” qualities of an item
PRINCIPLE OF REVERSILITY:
Whatever process is used to restore a painting or a piece of furniture, pottery or porcelain needs to be able to
be reversed so that if, in time, what was done is shown not to be appropriate then that restoration can be
removed and the object can be returned to the state in which it was prior to the restoration job.
PRISTINE/MINT/PROOF CONDITION:
Excellent condition, as if new and usually in its original packaging or box
PRIVATE LETTER RULINGS:
From time to time the IRS sets forth specific rulings in response to requests from individual tax payers. These
rulings are specific to the case by case situations presented by the taxpayer. While these rulings cannot be
used as vehicles for precedent setting, they do reflect the reasoning of the IRS and give clear indications of
how the IRS will react if a similar situation in another case is brought to their attention. All taxpayers and
appraisers would be well advised to study these rulings closely.
PRIVATE TREATY SALE:
This is a sale which occurs following an auction where the object being sold did not sell at the event and sells
privately thereafter.
QUALIFIED APPRAISER:
A Qualified Appraiser Is an individual who has earned an appraisal designation from a recognized professional
appraiser organization or has otherwise met minimum educational and experience requirements set forth in
regulations prescribed by the IRS. The minimum education and requirements are met if the appraiser has
successfully completed college or professional level course work that is relevant to the property being valued;
obtained at least two years of experience in the trade or business of buying, selling or valuing the type of
property being valued; regularly performs appraisals for which the individual receives compensation; and
meets such other requirements as may be prescribed by the IRS in regulations or other guidance.
QUALIFIED APPRAISAL:
A Qualified Appraisal is an appraisal conducted by a qualified appraiser in accordance with generally accepted
appraisal standards. The IRS further states that an appraisal will be treated as having been conducted in
accordance with generally accepted appraisal standards if it is consistent with the substance and principles of
20
the Uniform Standards of Professional Appraisal Practice also knows as USPAP. For donation purposes the
appraisal report must be prepared by a qualified appraiser not more than sixty days before the date of the
contribution of the appraised property. The appraisal must be signed and dated by a qualified appraiser who
charges an appraisal fee that is not based on a percentage of value and that contains the following
information: a detailed description of the property; the physical condition of the property; the date or expected
date of the contribution; the terms of any agreement or understanding entered into or expected to be entered
into by or on behalf of the donor that relates to the use, sale or other disposition of the property contributed;
the name, address and taxpayer identification number of the appraiser; a detailed description of the
appraiser’s background and qualifications a statement that the appraisal was prepared for income tax
purposes; the date on which the property was valued; the appraised fair market value of the property; the
method of valuation used to determine the fair market value; the specific basis for the valuation including any
comparable sales transactions and a description of the fee arrangement between the donor and the appraiser.
REAL PROPERTY:
This refers to land and the building/s attached to the land. For a building to be part of real property, the land
and the building must share the same title. If not, the building becomes part of personal property.
RECTO:
This refers to the right hand page of a book or the front side of a leaf or picture, on the other side of VERSO.
REFINISHED CONDITION:
This occurs when a piece has been stripped or skinned of its original patina and now sports a new finish.
REFRESHED CONDITION:
This is a relatively new term which refers to the repainting of a piece of furniture.
RELATED USE RULE:
This IRS rule is applied to charitable contributions and states that to receive the full allowable tax deduction a
donor must donate property to an institution whose mission explicitly includes the acquisition and use of such
property.
REPLACEMENT VALUE:
The amount it would cost to replace an item with one of similar and like quality purchased in the most
appropriate marketplace within a limited amount of time. Replacement value is applied, almost exclusively, to
insurance policies and is generally the highest valuation figure for personal property.
21
REPRODUCTION:
This term refers to a piece made as an exact copy or in the mirror image of the original of a period piece but is
not made to deceive.
RESALE VALUE:
This is the price at which the item can be sold in the marketplace.
RESERVE:
This term refers to the minimal amount for which a consignor agrees to sell a work for at auction. By law, the
reserve must be at or below the low estimate. Typically a reserve is about 50 to 25% below the low estimate.
RESTORATION:
This is the process whereby, if an object has lost a part and that missing part or piece is replaced or restored to
simulate the original the object can be returned as closely as possible to its original condition. See
CONSERVATION and PRESERVATION also.
RETAIL REPLACEMENT VALUE (RRV):
This is the highest value, usually for insurance purposes and is defined as the highest amount in terms of US
dollars that would be required to replace a property with another of similar age, quality, origin, appearance,
provenance and condition within a reasonable length of time in an appropriate and relevant market. When
applicable, sales and or import tax, commissions and or premiums are included in this amount.
RETAIL VALUE:
Used to establish a price guideline for retail pricing, the appraised retail value is derived from retail
replacement value. It is defined as a reasonable amount in terms of US dollars that would be required to
purchase a property of similar age, quality, origin, appearance, provenance and condition with a reasonable
length of time in an appropriate and relevant market. Unlike retail replacement value, retail values do not
include any fees or additional costs such as taxes, framing, conservation, restoration and additional
commissions.
RETAIL REPLACEMENT VALUE (RRV):
This term is defined as the highest amount in terms of US dollars that would be required to replace a property
with another of similar age, quality, origin, appearance, provenance and condition within a reasonable length of
time in an appropriate and relevant marketplace. Usually used for insurance purposes, also included in this
amount, when applicable are sales and/or import tax, commissions and/or premiums.
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REVENUE PROCEDURES (REV. PROC.):
Revenue Procedures are termed “guidelines” by the IRS. They set forth a methodology for dealing with general
situations. The taxpayer and the appraiser would be well advised to take these guidelines seriously and to
view them as IRS requirements rather than elective procedures which the term “guideline” may indicate to the
inexperienced appraiser. The IRS expects these guidelines to be followed and the courts have indicated that
this expectation is reasonable. In addition the IRS has been known to apply these guidelines to appraisal
situations which may not be specifically addressed in the guidelines themselves. For example, Rev. Proc. 66-
49 sets forth guidelines for donation appraisals; however, the IRS has been known to ask for the reporting
elements stated in these guidelines to be followed for estate appraisals as well.
REVENUE RULINGS:
These rulings complement the private letter rulings discussed above. While the private letter rulings are
directed to specific cases brought to the attention of the IRS, the revenue rulings set forth the general
principles addressed in specific private letter rulings. They also give tax consequences applicable to the
general situations addressed in the rulings.
RIGHT, CORRECT or OF THE PERIOD:
This term indicates that the object that is of the period, by the ascribed artist and is not a reproduction.
SALVAGE VALUE (SV):
This is a valuation term implying abandonment by the rightful owner in which the person recovering the
property may be entitled to a pre-agreed percentage of any net price realized in a future sale. Although there
have been some exceptions, salvage is generally the lowest or rock bottom price realized in a sale situation.
This is the net price in cash or other precisely revealed terms for which the property would change hands if sold
immediately without regard to the relevant marketplace and appropriate use. In certain cases, this may be a
negative value because labor and other costs may be required to disassemble and dispose of the property in a
quick, forced and expedient manner.
SCHEDULED ARTICLES:
This term is used by insurance companies when articles of personal property are individually listed, described
and valued on an insurance policy. Although some insurance companies will accept a receipt of a recent
purchase, the schedule is typically based on an appraisal. Typically scheduled items carry a lower insurance
premium than items which are under a blanket insurance policy.
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SECONDARY MARKET:
This term refers to the marketplace where a used object is bought and sold. Once an item is no longer
available from the original source, it is considered a secondary market item and usually refers to the auction
market and is in no way associated with the value or the condition of the object. The secondary market is the
venue for the sale of an object between a seller and a buyer with neither of them having participated in the
creation or initial sale of the object, usually through auction but can also be in galleries. In the instance of
multiples, a valid secondary market cannot exist while the maker or his agent retains a supply of the original
offering.
SECONDARY SOURCE:
Examples of secondary sources utilizing exact primary sources in research and data comparison are ArtNet,
ArtFact, P4a, Gordonsart, Art-Sales-Index, newel.com and other Internet research tools.
SELLER’S PREMIUM
This is the percentage of the bid or “hammer” price paid by the seller to the auction when selling an item. The
fee ranges from nothing to 35% and may be more negotiable than the Buyer’s Premium. See also BUYER’S
PREMIUM and HAMMER PRICE.
SENTIMENTAL VALUE:
This is never a monetary value but rather an emotional valuation not based on market factors or aesthetics.
SKINNED CONDITION:
This term refers to a piece of furniture which has been stripped of its original patina and also describes a paper
condition where skinned paper indicates the paper has lost a layer of fibers.
SS (STERLING SILVER):
This is the acronym for sterling silver objects and is often required by insurance companies to designate the
objects on a written report which may be subject to a higher insurance premium.
STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS:
These terms or concepts are generally linked together in most appraisals. An ASSUMPTION is that which is
taken to be true. An EXTRAORDINARY ASSUMPTION is an assumption, directly related to a specific assignment,
which, if found to be false, could alter the appraiser’s opinions or conclusions. A LIMITING CONDITION refers to
conditions that limit the appraiser’s examination or research of the appraised items and the appraisal
assignment. HYPOTHETICAL CONDITIONS are those which are contrary to what exists but are supposed for the
24
purpose of analysis. According to USPAP, all assumptions and conditions must be listed and qualified in every
appraisal.
STEPPED UP BASIS:
This is a tax term and refers to a value that is used to determine profit or loss when property is sold. If
someone inherits property that has increased in value since the deceased person acquired it, the tax basis of
the new owner is stepped up to the market value of the property at the time of death. The stepped up basis
means that when the property is eventually sold there will be less taxable gain.
STYLE; IN THE STYLE OF:
This refers to a piece made after the original would have been made and has the same features as the original
just made years later.
TAX IDENTIFICATION NUMBER (TAX ID):
The tax ID number is an IRS term and requirement. In most cases, this is the social security number of the
appraiser which the IRS requires the appraiser to list in certain types of appraisals with the appraiser’s
signature. In this way, the IRS can impose sanctions on the appraiser should they be warranted.
TERTIARY MARKET:
This marketplace occurs in a forced sale situation such as liquidation or salvage sales.
TESTIFYING EXPERT:
This is an appraiser who not only provides technical expertise and background knowledge to the attorney and
the client in a litigious situation but is also used on the witness stand to explain complex valuation issues and
to express expert opinions and conclusions as they relate to the object or objects in dispute. Such expertise
may be related to the quality of the object, the value or the object or the methodology of the opposing
appraiser. The work of the testifying expert is discoverable in court.
THERMOLUMINESCENT TEST:
This is the definitive way to tell the true age of pottery, stoneware, porcelain, bronze and terra cotta. There are
a handful of thermoluminescent labs worldwide which perform the thermoluminescent test. The most
prominent lab is in Oxfordshire, England. Today most large auction houses will not put an item on sale without
a certificate showing that the test has verified the artifact’s age. To test an object’s thermoluminescence, a
small sample (about 100 milligrams) is heated to extreme temperatures. Most mineral materials store up
increasing amounts of radioactive energy that is drawn from radioactive decay in and around the mineral.
25
When heated (thermo), most minerals release the stored energy in the form of light (luminescence). By
measuring the amount of light released from a material, one can calculate how many years have passed since
the artifact was fired. Generally, the more light released the older the item is.
ULTRAVIOLET LIGHT (UV):
These are short, high energy invisible light waves beyond violet in the spectrum of light with a length of 250 to
400 nanometers.
UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP):
These are the appraisal procedures and guidelines for conducting and writing appraisals published by the
Appraisal Standards Board of The Appraisal Foundation. First codified in 1987, these standards apply to all
disciplines of appraising and are predicated on the concept that there is common methodology which can be
found in all aspects of appraisal practice including appraisal, appraisal review and appraisal consultancy.
VALUATION APPROACHES:
COMPARATIVE MARKET DATA APPROACH:
This is the most commonly applied approach when appraising personal property in which appraised value is
based upon past prices for similar works by the same artist or artisan or similar works by another artist or
artisan of equal standing and related reputation.
COST APPROACH:
This approach is used to determine the value of an object based upon the cost of duplicating or recreating the
identical piece. This approach may be applied to the decorative arts when the methods of construction or
materials used are replicable and of significant inherent value.
IINCOME APPROACH:
This approach is used to determine the value of a work of art or object which will be used to generate future
income. This is most often done through leasing, rental or creating reproductions but not through a one-time
only sale with transfer of title and/or copyright.
VALUE:
This is a dollar amount dependent upon the type of appraisal report being written: insurance, IRS, equitable
distribution for divorce proceedings or liquidation. The appraiser must state which value is being used and give
a clear, concise definition of that value and cite the source for the definition.
26
VALUE IN EXCHANGE:
This term refers to the ability to trade an item or asset, especially money, for other goods and services that can
then be used to satisfy wants and needs. Value in exchange means that value that is satisfaction, is obtained
indirectly through the acquisition of something else. For an item to have value in exchange, it need NOT have
value in use, value obtained directly from the consumption of a good or service.
VALUE IN USE:
This term refers to the satisfaction of wants and needs provided by the direct consumption of goods and
services. Acquiring value from the use of goods and services is really the ultimate goal of economic activity. It is
the final step in the production, allocation and consumption activities that are undertaken to address the
fundamental problem of scarcity. Value in use should be contrasted with the similar phrase VALUE IN
EXCHANGE.
VERSO:
This term refers to the left hand page of a book or the back side of a leaf or a picture on the other side of
RECTO.
VINTAGE:
This is a widely used term referring to an object that was formerly in vogue but not more than 100 years old.
This definition may vary by object, i.e., a vintage fountain pen is generally thought to be one manufactured pre-
1965.
WATERMARK:
This is a design left in the paper by the paper manufacturer and is seen when the paper is held against the
light. This mark is used to trace the origin of the paper. Special markings for an artist or publisher may
incorporate a signature or a device and can be used to detect fakes although even watermarks can be faked.
Watermarks on hand made papers are made by very low relief molds or designs of fine wire set on the screen
on which the moist pulp collects.
WORK SIZE:
This refers to the dimensions of works on panel or board. When the word “sight” is used in conjunction with
work size, it refers to the dimensions of the visible image of the work.
Values
Retail Replacement Value (RRV) Highest Value (Usually for Insurance Purposes) is defined as the highest amount in terms of US dollars that would be required to replace a property with another of similar age, quality, origin, appearance, provenance, and condition within a reasonable length of time in an appropriate and relevant market. When applicable, sales and / or import tax, commissions and/or premiums are included in this amount. (NYU Appraisal Studies Program definition)
Auction Replacement Value (ARV) (Usually for Insurance Purposes) is defined as a reasonable amount in terms of US dollars that would be required to replace a property with another of similar age, quality, origin, appearance, provenance and condition within a reasonable length of time in an appropriate and relevant auction market. Since the client regularly and routinely buys at auctions, the appraisers rarely examined the retail market. When applicable, sales and/or import tax, commissions and/or premiums are included in this amount.
Retail Value (Used to Establish a Price Guideline for Retail Pricing) Appraised “retail value” is derived from “retail replacement value.” It is defined as a reasonable amount in terms of US dollars that would be required to purchase a property of similar age, quality, origin, appearance, provenance, and condition within a reasonable length of time in an appropriate and relevant market. Unlike “retail replacement value,” “retail value” does not include any fees or additional costs, such as taxes, framing, conservation, restoration, and additional commissions.
Fair Market Value (FMV) – Middle “Secondary Market” Value (Usually for IRS Purposes) as defined by IRS Section 1.170 and 20.2031 (b) is “the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having a reasonable knowledge of relevant facts.” According to Technical Advisory Memorandum 9235005 (May 27, 1992), fair market value should include the buyer’s premium.
20.2031 (b) continues “the fair market value of an item of property includible in the decedents’ gross estate is not to be determined by a forced sale price. Nor is the fair market value of an item of property to be determined by the sale price of that item in a market other than that in which such item is com-monly sold to the public, taking into account the location of the item wherever appropriate. Thus, in the case of an item of property includible in the market, fair market value of such an item of property is the price at which the item or a comparable item would be sold at retail.”(Treasury Regulation Section 1.170A - 13©) (3) (1998)
Marketable Cash Value (MCV) – Middle/Low “NET” Value (Usually for Equitable Distribution, Resale or Estate Planning Purposes) is defined as the net value a willing seller realizes after disposing of property in a competitive and open market to a willing buyer. Both the buyer and seller must be reasonably knowledgeable of all relevant facts, and neither being under constraint to buy or sell. Marketable cash value takes into consideration insurance, dealer commissions, advertising, travel, and shipping expenses that may be involved in the sale.
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property appraising, expert witnessing, court testimony, art
consulting and public speaking
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options to fit your business needs or to meet contractual
obligations
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ty to service any of your business's other insurance needs
Please see policy contract for exact terms and conditions of
coverage and applicable exclusions.
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directly to:
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7/03 APPROPRIATE MARKETS PURPOSE OF APPRAISAL DEFINITION OF VALUE MARKET LEVEL APPROACH Insurance RRV Retail/major & Cost/Market Comparison Inventory minor auction Insurance RRV Retail/major & Cost/Market Comparison/ Loss minor auction Income Insurance RRV/SV Retail/major & Cost/Market Comparison/ Damage minor auction Income IRS - Estate FMV Major & minor Market Comparison (No spouse) auction/retail IRS - Estate (spouse) FMV Major & minor Market Comparison (Cap. Gains) auction/retail IRS - Donation FMV Major & minor Market Comparison
auction/retail IRS - Gift FMV Major & minor Market Comparison
auction/retail IRS - Loss FMV Major & minor Market Comparison (No Insurance) auction/retail Equitable MCV/SV Major & minor Market Comparison Distribution auction (Divorce Business Dissolution, Estate Planning) Resale MCV Major & minor Market Comparison
auction Orderly MCV/LV/SV Major & minor Market Comparison Liquidation auction/consignment Disorderly MCV/LV/SV Minor auction Market Comparison Liquidation Flea market Courtroom Testimony RRV/FMV/MCV/ Retail/auction/ Market Comparison/ LV/SV etc. Cost/Income Verbal DO NOT DO!!! NOTE - PLEASE BE AWARE THAT EXCEPTIONS EXIST IN EACH CATEGORY. RRV = Retail Replacement Value FMV = Fair Market Value MCV = Marketable Cash Value LV = Liquidation Value SV = Selvage Value
SAMPLES OF VERBIAGE FOR NEW USPAP REQUIREMENT REGARDING THE ETHICS
RULE ABOUT PAST EXPOSURE TO THE APPRAISED OBJECT USPAP 2010-2011 Edition The Appraisal Foundation Ethics Rule, Page A-8
231 If known prior to accepting an assignment, and/or if discovered at any time during the assignment, 232 an appraiser must disclose to the client, and in the subsequent report certification: 233 ! any current or prospective interest in the subject property or parties involved; and 234 ! any services regarding the subject property performed by the appraiser within the three 235 year period immediately preceding acceptance of the assignment, as an appraiser or in any 236 other capacity. 237 Comment: Disclosing the fact that the appraiser has previously appraised the property is permitted 238 except in the case when an appraiser has agreed with the client to keep the mere occurrence of a 239 prior assignment confidential. If an appraiser has agreed with a client not to disclose that he or she 240 has appraised a property, the appraiser must decline all subsequent assignments that fall within the 241 three year period.
APPRAISER’S PAST EXPOSURE TO OBJECT: Since 2003, the appraiser has viewed this on several occasions at the client’s home. The appraiser included object in the client’s insurance appraisal. APPRAISER’S PAST EXPOSURE TO OBJECT: Although the appraiser has appraised this print for other clients, to the appraisers knowledge, this is her first time appraising this particular numbered edition. APPRAISER’S PAST EXPOSURE TO OBJECT: Although the appraiser has appraised silver in this pattern for other clients, to the appraisers knowledge, this is her first time appraising pieces in this particular service. APPRAISER’S PAST EXPOSURE TO OBJECT: Although the appraiser has appraised similar items of furniture for other clients, to the appraisers knowledge, this is her first time these particular items. APPRAISER’S PAST EXPOSURE TO OBJECT: Since the appraiser has been in the auction business for twenty years, it is impossible to remember every item the appraiser has examined and/or sold. As such, although the appraiser cannot guarantee that he has not been exposed to this item in the past, the appraiser does not recall having any exposure to this work in any capacity for at least the past three years. APPRAISER’S PAST EXPOSURE TO OBJECT: The appraiser sold this table to the client in 2008. APPRAISER’S PAST EXPOSURE TO OBJECT: The appraiser appraised this ring for the estate of Cruella D. Head, the client’s mother, in 2009. No breach of confidentiality occurred as the appraiser’s signed contract with the Estate includes a disclosure release. APPRAISER’S PAST EXPOSURE TO OBJECT: The appraiser was familiar with this painting as it sold at the gallery, The Good Art Gallery, where the appraiser had previously been employed as an archivist, 2002-2008. The appraiser was not involved in the sale of the painting. APPRAISER’S PAST EXPOSURE TO OBJECT: The appraiser was retained by the client as a photographer and to make a transparency of this painting in June 2008 for a potential sale. The appraiser was not involved in the sale negotiations. APPRAISER’S PAST EXPOSURE TO OBJECT: The appraiser discussed this chair in her book entitled, French Chairs of the 1950s, published by Claverack Books, Hudson, New York in 2008. At that time it was owned by the current client.