What does fair market value mean for furniture?
The price a willing buyer would pay a willing seller in the furniture's most common market, following the definitions in Treasury Regulations 1.170A-1(c)(2) and 20.2031-1(b). For most household pieces that market is resale, meaning estate sales, consignment, and used dealers, not new retail showrooms.
Can I estimate furniture FMV as a percentage of what I paid?
No. The IRS rejects formula approaches based on original or replacement cost, and industry heuristics like 50 to 70 percent of retail are not recognized valuation methods. Defensible values come from documented sales of comparable pieces, and worn or dated furniture may have little or no market value at all.
How does furniture FMV differ from an insurance appraisal?
Insurance appraisals state replacement value, the retail cost of a comparable item today, which typically runs well above fair market value. Importing insurance figures into a tax filing, estate, or equitable distribution overstates value, and it is one of the most common material errors we are asked to correct.
What makes a furniture FMV conclusion hold up under review?
Identification of the most common market, plus maker, age, acquisition history, and condition notes, supported by several comparable completed sales showing actual sale prices, not asking prices, with dates and venues. Reports missing those elements are the ones the IRS and courts pick apart.