| Attorney Saves Thousands in Taxes |
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An attorney I have previously done IRS estate tax appraisals for
called me several months ago to do some research concerning the change in value of diamonds
the past three years. I found the information he needed, and faxed it to him. Several
weeks ago, I ran into him in informal setting and asked him what had happened with this
matter. It seems that he was hired to do the estate work for the heirs of a Mexican client
who had purchased a amount of loose diamonds during his life to serve as retirement,
expecting their value to increase. The heirs unaware of the problems regarding inaccurate
appraisal went to a local retail jewelry store and asked to have the diamonds appraised
for tax purposes. The appraiser, educated in the procedures for obtaining fair market
value and not realizing the huge tax liability, appraised the diamonds for the highest
value.......insurance replacement. The attorney who called me was very knowledgeable in
estate tax issues, used my data and negotiated with the IRS use auction prices to assess
the tax due instead of replacement costs. This resulted in a net savings of $25,000 to the
heirs. The moral of the story: When you are asked to negotiate based on an
appraiser’s values, sure you hire an appraiser who has accurate data, experience, and
expertise beforehand.
Susan Eisen, January, 1999.
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