The conditions of an estate appraisal and a donation appraisal are similar. An estate appraisal is an estimate of the fair market value of the appraised jewelry. For estate tax purposes, the fair market value is the statistical mode of the prices at which the greatest number of arms-length transactions take place between willing buyers and willing sellers, where both parties have reasonable knowledge of the relevant facts and neither is under the compulsion to act. This holds true for items of like kind and quality in their present state, in the most common market in which they would be sold to the ultimate consumer, for a purpose other than resale.
This report will be prepared for federal tax purposes and meet the relevant requirements of the IRS Regulations Section 1.170A-13(c)(3) and Notice 2006-96, 2006-46 I.R.B.902 as of the date of this report until amended. (IRS Publication 561)