Which situation is yours?
Why the situation comes first
Every one of these rests on the same idea, fair market value: the price a willing buyer and a willing seller would agree on, with neither forced to act. The IRS says the sales prices of similar property are often important in determining it. What changes from one situation to the next is the date the value is set, the form that asks for it, and the paperwork behind it.
| Situation | What the number is for | Main form |
|---|---|---|
| Donated | The date of the gift | Form 8283, and a qualified appraisal above $5,000 |
| Inherited | The date of death, or the alternate date six months later where it is available | Form 706, Schedule F |
| Gifted | The date the gift is made | Form 709 |
| Sold | What you received against your basis | Form 8949 and Schedule D |
| Insured | Today’s market against the insured figure; before and after a loss | Form 4684 |
Three things every situation needs
- A date. The value is as of a day, whether that is the gift, the death or the sale. Comparable sales have to come from before that day.
- Comparable sold prices. Real sales of the same model or reference, not asking prices, dealer offers or an insurance schedule.
- Your own records. Photos, what you paid and when, earlier appraisals, and any documents from the charity, the estate or the buyer.
Start with the number
See what it sold for
The free Price Check shows real sold prices for the same model, with dates, houses and a low, median and high.
See what it sold forNeed it in writing?
Open the ALT/FNDATA Wealth app and tell us the piece and what it is for.
Request a valuation report or a qualified appraisalOur form guides
If you already know the form, these guides go deeper on each one:
- Our Form 8283 guide, for donations.
- Our Form 706 guide, for estates.
- Our Form 709 guide, for gifts.
- Our guide to selling and the 28% rate, for sales.
- Our year-end valuation guide, for the year-end timing windows.
For your CPA, and free tools
Frequently asked questions
What does fair market value mean for tax purposes?
The IRS defines it as the price at which property would change hands between a willing buyer and a willing seller, with neither forced to buy or sell and both having reasonable knowledge of the facts. For art and collectibles, the IRS says the sales prices of similar property are often important in determining it.
Is my insurance value the same as fair market value?
No. Publication 561 says, using jewelry as its example, that an insured value does not reflect what a willing buyer and seller would pay and reflects only replacement cost.
Which forms apply to art and collectibles?
It depends on the situation. A donation uses Form 8283, an estate uses Form 706, a gift uses Form 709, a sale uses Form 8949 and Schedule D, and a theft or damage loss uses Form 4684. Your CPA confirms which apply to you.
Does ALT/FNDATA give tax advice or act as the appraiser?
No. ALT/FNDATA is a market-data provider. We show what comparable pieces actually sold for. Tax decisions belong to your CPA and attorney, and a qualified appraisal must be prepared by a qualified appraiser as the IRS defines the term.