"Ron Natalie"wrote:
I agree with Fred here. In the case of something like
a "New Car" the IRS will consider the value to be the
MSRP. However since this isn't the case, some
acceptable appraisal technique (blue book, etc...) will
apply.

The IRS has no basis in case law to enforce MSRP on a car, and
since IRS examination employees buy new cars, they are well aware
what negotiated prices are. The difficulty with arguing FMV on an
airplane is that they may not accept just one appraisal submitted
by the taxpayer. However, since 1998, IRS will have the burden of
proof on this one, so that settlement in an appeals conference
shouldn't be too difficult.

Fred F.