> Eric Frankson: > Desert Piano, Rancho Mirage, CA > I hadn't thought of the legal ramifications of misquoting piano estimates. I've always used a 60 year life span for estimating the price of a grand (40 years for verticals). If the piano was 30 years old, half of it's life is over, so it would sell for half of what one sells for new. Your KG-2E's life is a 1/6th over, so I would estimate the retail value (not wholesale) is worth 5/6th of a new RX-2 ($21,500 average price found in Larry Fine's Piano Book price guidline) or $17,845 in mint condition. But realistically, a $12,000 to $14,000 price tag is much more realistic in today's retail environment. Most dealers would take $20,000 for a new RX-2, which makes the $20,000 price estimate for a KG-2E as a bit wishfull. But, as always, "Buyer Beware". > Sure, I think that your method of appraisal is a good standard from which to work. The thing is that Ed Foote has been asked to evaluate a KG-2E for donation purposes. In other words, I am assuming that his client would really like to see the highest FMV as possible; the higher the value, the more the client can deduct from their taxes. I completely agree that $20,000 would be VERY wishful thinking, but that was just a number that he said a dealer mentioned to him. He should not overvalue the piano; that could start problems with the IRS. I just do not know if $12,000 is being fair to the client based on the description of the piano. Personally, I would start setting the FMV somewhere around $15,000 for tax purposes. But there is good argument for a few thousand dollars in either direction. Again, if someone asked me how much I thought they should pay for that piano, most likely I would recommend something like $10,000. This situation simply has a different set of criteria . . . I am interested to know how others would appraise a piano like that for 'tax purposes.' It really comes down to how the IRS's definition of FMV is interpreted, and what the implied responsibilities the IRS puts on the appraiser. I wonder if the IRS has published any further guidelines specifically for the appraiser? Bradley M. Snook
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