What Is fair market value?
To figure how much you may deduct for
property that you contribute,
you must first determine its fair market
value on the date of the contribution.
Fair market value is the price that
property would sell for on the open
It is the price that would be agreed on
between a willing buyer and a willing
seller, with neither being required to
act and both having reasonable knowledge
of the relevant facts.
What is replacement value?
The amount it would cost to replace an
artwork with the same or similar image,
and of the same or similar substrate,
image size, and edition.
- One of the most common situations for
collectors involves appraisal for
insurance coverage. With valuable
antiques, decorative arts, fine art
insurance companies require these items
to be scheduled separately and to have
the amount of coverage supported by an
independent appraisal. The type of value
that usually is required in this
replacement value. This means the amount
of money that would be required to be
paid in the marketplace to replace a
property with one of like kind and
- Replacement value includes not only
the cost of acquiring or replicating the
property, but also all the relevant
costs associated with replacement. These
other costs may include all applicable
taxes and duties, framing and