The short answer
The Form 709 instructions say the value of a gift is the fair market value of the property on the date the gift is made, the price at which it would change hands between a willing buyer and a willing seller when neither is forced to act and both have reasonable knowledge of the facts.
The same instructions explain adequate disclosure. To begin the running of the statute of limitations for a gift, the gift must be adequately disclosed on Form 709 or an attached statement, and for property like art that includes either a qualified appraisal or a detailed description of the method used to determine fair market value.
For the person who receives the piece, Publication 551 sets out the basis rules for property received as a gift, which generally start from the donor’s adjusted basis. So the donor’s cost records matter as well as the value on the day of the gift.
The forms that apply
| Form or rule | What it asks for | Read more |
|---|---|---|
| Form 709 | The United States Gift (and Generation-Skipping Transfer) Tax Return reports gifts, with the date of the gift and the value at that date. Whether a return is required for your gift is a question for your CPA. | Our Form 709 guide |
| Adequate disclosure | A qualified appraisal, or a detailed description of the method used to determine fair market value, is part of adequately disclosing a gift. See the Form 709 instructions. | Our Form 709 guide |
| Basis for the recipient | Publication 551 covers basis in property received as a gift. It matters if the recipient later sells. | Our guide to selling and the 28% rate |
What to gather
- The date title passed to the recipient. A documented date of gift fixes the valuation date.
- A description of the piece with photos, and any serial numbers, box, papers or certificates.
- What the donor paid and when, since basis for the recipient starts from the donor’s.
- Any earlier appraisal or insurance schedule, with its date. Keep it, but an insured value is not fair market value.
- Comparable sold prices as of the date of the gift, for the same model or reference.
- A list of the recipients and what each was given in the year, which your preparer will need.
Worked example: a Rolex GMT-Master II 'Batman' 116710BLNR given on 31 December 2025
Suppose the gift is made on 31 December 2025. Here is what the same reference sold for at auction in the twelve months up to that date.
| Sale date | House | Sold price (USD) | Sold in | Lot |
|---|---|---|---|---|
| 10 Dec 2025 | Sotheby's | $15,240 | USD 15,240 | View |
| 10 Dec 2025 | Sotheby's | $16,510 | USD 16,510 | View |
| 10 Dec 2025 | Sotheby's | $17,780 | USD 17,780 | View |
| 8 Dec 2025 | Sotheby's | $20,320 | USD 20,320 | View |
| 3 Dec 2025 | Christie's | $13,056 | HKD 101,600 | View |
| 25 Nov 2025 | Bonhams | $13,169 | HKD 102,400 | View |
| 22 May 2025 | Bonhams | $18,907 | GBP 14,080 | View |
How to read this. These are sold lots only, not estimates and not asking prices, matched on the model or reference. The USD figure is the price the house recorded, converted at a rate near the sale date; the "Sold in" column shows the original currency. Whether a recorded price includes the buyer’s premium depends on the house. A lot listed under two links is counted once. Condition, completeness, dial and provenance move individual prices, so a range is a starting point and not an opinion of value. Figures pulled from our data on 11 November 2026.
The two lowest sales were both in Hong Kong dollars, at Christie’s and Bonhams in late 2025, and the highest was a Sotheby’s sale in US dollars. Where and in what currency a lot sold is part of the comparison, and the appraisal still has to address the actual piece.
Two ways to go from here
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 appraisalTools that fit
Frequently asked questions
What is a gift of art or a watch worth for gift tax?
The Form 709 instructions say the value of a gift is its fair market value on the date the gift is made. For art and collectibles, that value is anchored in comparable sold prices.
Do I need an appraisal for a gift of a collectible?
To adequately disclose a gift, the Form 709 instructions call for either a qualified appraisal or a detailed description of the method used to determine fair market value. Your CPA or attorney advises on which suits your gift.
What date is used to value a gift?
The date the gift is made. That is why a documented date of gift matters.
What is the recipient’s basis in a gifted piece?
Publication 551 sets out the rules. For property received as a gift they generally start from the donor’s adjusted basis, so keep the donor’s purchase records.
How can I check what similar pieces sold for?
Use the free Price Check to see real sold prices for the same model, with dates, houses and a low, median and high.
Sources
- IRS Instructions for Form 709 (2025)
- IRS Publication 551, Basis of Assets
- IRS Publication 561, Determining the Value of Donated Property (Rev. December 2025)