What Is The Fair Market Value of Something That Cannot be Sold?

That's the question that lawyers of the heirs of New York art dealer Ileana Sonnabend and the IRS are arguing in this Catch-22 case involving artwork by Robert Rauschenberg:

Because the work, a sculptural combine, includes a stuffed bald eagle, a bird under federal protection, the heirs would be committing a felony if they ever tried to sell it. So their appraisers have valued the work at zero.

But the Internal Revenue Service takes a different view. It has appraised “Canyon” at $65 million and is demanding that the owners pay $29.2 million in taxes.

“It’s hard for me to see how this could be valued this way because it’s illegal to sell it,” said Patti S. Spencer, a lawyer who specializes in trusts and estates but has no role in the case.

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It's a Robert Rauschenberg of course it's worth something like $65mill, many abstract expressionist works are worth tons now. They would need a permit from the secretary of the interior, to sell the work, and shouldn't the lawyers be able to do that?
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The value of the object has no bearing on whether or not it can be sold. Can they sell it outside of the USA?

Hard to commiserate with rich people trying to avoid paying taxes.
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This isn't the IRS run amok. Most likely, this is some very wealthy people trying to stop themselves from paying estate taxes on basically anything through exploiting as many legal loopholes as possible. And I can tell you from experience talking with trust lawyers there's many scams. It's basically what's fundamentally broken in our tax system. The people with the most wealth can afford all the lawyers needed to construct these tax shelters, people at the bottom have nothing anyways, and the people in the middle get squeezed to support everyone, and don't have the resources to trick their way out of it.

It's a systemic problem, that needs to be fixed, but probably never will because those with the most money have the biggest voice in politics, and only a few are willing to admit they and their actions are part of the problem.
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Give the thing to the IRS as payment of the tax, and ask them to pay back the difference (valuation minus tax). The IRS may suddenly have a different view on the worth of the thing once it belongs to them.
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While I'd say the IRS is being fairly unreasonable here, I'm also having a hard time feeling much pain for someone's kids who inherited a *billion dollar* art collection.
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The value of anything is only what some idio\\\\ person is willing to pay for it. Like Antiques Roadshow; just because an expert says it's worth a fortune, doesn't mean that's what it will sell for.
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@ DEA

Bald Eagles only have white heads when they reach maturity at the age of 3-4 years. Before that age they are brown and look very similar to the Golden Eagles.

Anyways this is a prime example of the IRS being a bunch of vultures for demanding half of the value of the sculpture in taxes. The government has gotten out of control with their inheritence taxes.

Second of all that is one hideous sculpture that I don't give you half a PB&J sandwich for.
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Except that isn't a bald eagle, or at least it doesn't appear to be - bald eagles have white heads, hence the whole "bald" part. I found a larger copy and it looks to possibly be a golden eagle.
Either way, it is an illegal bird to kill or have parts of...
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