Which value standard applies when furniture is appraised for estate taxes?
Fair market value as defined in Treasury Regulations Section 20.2031-1: the price a willing buyer and seller would agree on in the relevant market. That means conclusions rest on recent comparable sales, not insurance replacement figures, for furniture reported on Forms 706 and 709.
Where do comparable sales for antique furniture come from?
Auction and dealer databases: aggregators like LiveAuctioneers and Invaluable, subscription databases such as WorthPoint, and records from major houses including Sotheby's, Christie's, and Bonhams. We look for closely comparable sold items and adjust for condition, size, maker, and venue.
Does refinishing antique furniture raise its value?
Usually the opposite. Collectors pay dramatically more for original surfaces and honest wear, and heavy sanding, modern polyurethane finishes, or inappropriate reupholstery can drop a piece from an A to a C condition grade, with price swings of 50 percent or more supported by comparables showing original examples realizing far higher prices.
How quickly does ordinary modern furniture depreciate?
Steeply. Mass-market pieces often lose 30 to 50 percent of retail value in the first year and roughly 5 percent per year thereafter, so the store receipt is not a reliable indicator of current value. Designer brands and collectible makers are the exception and can appreciate instead.
When does donated furniture need more than a receipt?
Deductions over $5,000 for furniture and decorative arts require a qualified appraisal filed with Form 8283, and high-value decorative arts over $20,000 may be referred to the IRS Art Advisory Panel for review. The governing standard is fair market value, with the effective date, market, and supporting comparable sales identified in the report.