When administering an estate, precision is critical. For attorneys preparing IRS Form 706, every reportable asset must reflect a defensible fair market value—including collector vehicles. Unlike standard daily drivers, classic and specialty automobiles require a valuation grounded in real-world collector market data. A professional appraisal ensures that reported values meet both IRS standards and marketplace reality.
Form 706 and Fair Market Value
IRS Form 706 requires assets to be reported at fair market value as of the date of death (or alternate valuation date, if elected). Fair market value is defined as the price at which property would change hands between a willing buyer and seller, neither under compulsion and both informed of relevant facts.
For collector vehicles, that definition carries nuance. Value is driven by originality, restoration quality, matching numbers, documentation, provenance, rarity, and comparable sales. Guidebook figures alone rarely tell the full story—and may not withstand scrutiny.
A Defensible, Well-Documented Approach
Our appraisal reports are structured to support the attorney’s filing and documentation requirements. Each report includes:
- A clearly stated effective date of value
- Detailed condition and originality analysis
- Relevant comparable sales data
- Documented adjustments and valuation rationale
- Market commentary supporting the final conclusion
This methodology provides a well-supported value conclusion based on current and historical market evidence—not assumption.
Risk Mitigation for the Estate
Overstated values can increase estate tax exposure. Understated values can invite IRS inquiry. An independent, third-party appraisal strengthens the estate file and demonstrates that reasonable care was taken in determining value.
This is particularly important when estates include multiple collector vehicles, rare models, or high-value classics where market swings can materially affect reported value.
Efficient, Attorney-Focused Service
We work directly with attorneys, personal representatives, and families to meet filing timelines. Our process is organized, deadline-driven, and responsive to follow-up questions or supporting documentation requests.
Accurate vehicle valuation is more than assigning a number—it is about protecting the integrity of the estate and supporting the attorney’s professional responsibility.
If you are preparing an estate tax return that includes collector vehicles, we provide timely, well-documented appraisal reports tailored specifically for IRS Form 706 requirements. If you have additional questions regarding valuation methodology, documentation standards, or timing, please reach out to us directly—we are happy to discuss your specific situation and how we can assist.