Mark C. Grove » Appraisal News

DEADBEATS: Virginia Small Claims Court

markcgrove — Mon, 16 Jan 2012 16:02:20 +0000

Small Claim Court Procedures in Virginia.

JAN 16th 2012, RE: http://www.courts.state.va.us/resources/small_claims_court_procedures.pdf .

Don’t let deadbeats get away with thievery. No matter how small the amount, a thief is a thief. Go after them. Make them pay what is owed plus legal fees, Court costs, interest, their time, and public embarrassment.

Quarterly Antiques Market Report 4th Qtr 2011: JANUARY 2012 Sales Advisory

markcgrove — Fri, 13 Jan 2012 03:00:20 +0000

Quarterly Market Report: Trends, Tendencies, Demand Strength

Quarterly Market Report: 4th Qtr 2011

JANUARY 2012 ADVISORY:

In today’s market, retail collectors may realize a major loss when they consign antiques and art at auction if they purchased at the height of the market and are now selling at the bottom of this much changed market.

When sold at auction, personal properties will likely realize only a fraction of their original retail price because the auction venue is chiefly wholesale and the market is trending down and will likely continue to trend downward for at least two more decades because of changing demographics. Therefore one should expect to net 10% to 40% of the original retail price for auction-sold properties, in general. However, the end results of an auction sale of personal property may provide extreme anomalies: both significantly lower results and/or significantly higher results. Explanation: Auction sales results usually fall within a steep bell curve. The peak of the curve mostly falls in the middle of a calculated presale estimate (a low-to-high range, e.g. $200-$400). Typically, about 5% of the hammer sales fall at the bottom of the slopes on either side of this curve, and in effect, offset one another. This scenario is oft repeated around the world.

Current market stylistic trends will likely compound the loss effect. Downsizing Boomers are dumping their personal property en masse at auction. Much of that consigned property reflects the decorating crazes of the 1950s through the 1980s. Furniture collected during this period was often refinished and brown, literally, as most wood is and most period styles are. However, “brown” furniture is currently not in stylistic favor, particularly in the eastern mid-Atlantic North America northward and especially with the younger generations who apparently have no style at all, and “brown” is flooding the marketplace.

The current market continues to be jittery and very cautious due to several negative dynamics mentioned in earlier Market Reports on these pages: e.g. national debt, runaway government spending, mandated health care and its impact on employers, the recent realignment within the Islamic World, rising oil futures, the Japan 9.0 earthquake and resulting tsunami, and the present threat of economic collapse of the Euro.

IRS Form 8283, Appraiser Qualifications, and Penalties for Fraudulent Donating

markcgrove — Wed, 11 Jan 2012 15:00:09 +0000

IRS Publication 561

Qualified appraiser. A qualified appraiser is an individual who meets all the following requirements.

The individual either:
1. Has earned an appraisal designation from a recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised, or
2. Has met certain minimum education and experience requirements. For real property, the appraiser must be licensed or certified for the type of property being appraised in the state in which the property is located. For property other than real property, the appraiser must have successfully completed college or professional-level coursework relevant to the property being valued, must have at least 2 years of experience in the trade or business of buying, selling, or valuing the type of property being valued, and must fully describe in the appraisal his or her qualifying education and experience.
The individual regularly prepares appraisals for which he or she is paid.
The individual demonstrates verifiable education and experience in valuing the type of property being appraised. To do this, the appraiser can make a declaration in the appraisal that, because of his or her background, experience, education, and membership in professional associations, he or she is qualified to make appraisals of the type of property being valued.
The individual has not been prohibited from practicing before the IRS under section 330(c) of title 31 of the United States Code at any time during the 3-year period ending on the date of the appraisal.
The individual is not an excluded individual.

In addition, the appraiser must complete Form 8283, Section B, Part III. More than one appraiser may appraise the property, provided that each complies with the requirements, including signing the qualified appraisal and Form 8283, Section B, Part III.

Excluded individuals. The following persons cannot be qualified appraisers with respect to particular property.

The donor of the property, or the taxpayer who claims the deduction.
The donee of the property.
A party to the transaction in which the donor acquired the property being appraised, unless the property is donated within 2 months of the date of acquisition and its appraised value is not more than its acquisition price. This applies to the person who sold, exchanged, or gave the property to the donor, or any person who acted as an agent for the transferor or donor in the transaction.
Any person employed by any of the above persons. For example, if the donor acquired a painting from an art dealer, neither the dealer nor persons employed by the dealer can be qualified appraisers for that painting.
Any person related under section 267(b) of the Internal Revenue Code to any of the above persons or married to a person related under section 267(b) to any of the above persons.
An appraiser who appraises regularly for a person in (1), (2), or (3), and who does not perform a majority of his or her appraisals made during his or her tax year for other persons.

In addition, a person is not a qualified appraiser for a particular donation if the donor had knowledge of facts that would cause a reasonable person to expect the appraiser to falsely overstate the value of the donated property. For example, if the donor and the appraiser make an agreement concerning the amount at which the property will be valued, and the donor knows that amount is more than the FMV of the property, the appraiser is not a qualified appraiser for the donation.

Appraiser penalties. An appraiser who prepares an incorrect appraisal may have to pay a penalty if:

The appraiser knows or should have known the appraisal would be used in connection with a return or claim for refund, and
The appraisal results in the 20% or 40% penalty for a valuation misstatement described later under Penalty.

The penalty imposed on the appraiser is the smaller of:

The greater of:
1. 10% of the underpayment due to the misstatement, or
2. $1,000, or
125% of the gross income received for the appraisal.

In addition, any appraiser who falsely or fraudulently overstates the value of property described in a qualified appraisal of a Form 8283 that the appraiser has signed may be subject to a civil penalty for aiding and abetting as understatement of tax liability, and may have his or her appraisal disregarded.

Form 8283

Generally, if the claimed deduction for an item of donated property is more than $5,000, you must attach Form 8283 to your tax return and complete Section B.

If you do not attach Form 8283 to your return and complete Section B, the deduction will not be allowed unless your failure was due to reasonable cause, and not willful neglect, or was due to a good faith omission. If the IRS requests that you submit the form because you did not attach it to your return, you must comply within 90 days of the request or the deduction will be disallowed.

You must attach a separate Form 8283 for each item of contributed property that is not part of a group of similar items. If you contribute similar items of property to the same donee organization, you need attach only one Form 8283 for those items. If you contribute similar items of property to more than one donee organization, you must attach a separate form for each donee.

Last Will and Testament: Get Your Act Together

markcgrove — Tue, 10 Jan 2012 03:20:48 +0000

People, you need to get your act together now rather than later. I’m talking about a Will, your Will, and other preparatory instruments that will make the transition easier on your loved ones after you’ve croaked. … Oh, heck, just say it: When you are dead. Yes,scarecrow, one day your sorry carcass will be molding in the ground or be making BTU’s to add to global warming. You need to think further ahead than your hood ornament. Most people do, but there are a few straw-for-brains that just can’t believe that they’re ever going to die. They’re in denial.

I witness this behavior all of the time. A couple of years ago I was brought in to render an appraisal for someone who had died intestate (without a Will). So the attending Judge orders an appraisal of all the decedent’s assets. I appraised the personal property. Personal property are movable tangibles, by the way. If the decedent had had a Will, an appraisal wouldn’t have been required by the Court. From my perspective, it was money well spent: I took my wife to Europe with what I made on that job.

But my overall point is this: plan now so that your loved ones do not have to go through the ordeal of distribution when they are grieving over your bones! Get a Will drawn or write one yourself. Anyone can download Will templates from the Internet or buy templates at office supply stores. Divide your assets equitably so the kids don’t tear each others throats out over your damned cufflinks, or whatever. Assign an Executor to carry out the detailed, specific instructions you so dutifully employed in your Estate Planning documents.

Make your instructions crystal clear, clear enough for a man to understand! Write down everything in short sentences at a fifth grade reading level. Read up on all of this stuff, this Estate Planning stuff, Wills, state laws, taxes, etc. Wikipedia and hundreds of other websites have tons to read about all of this morbid stuff. It’s your responsibility to know about it. It’s the right thing to do. Make it easier on your family and friends. Get your act together before it’s too late. Do your homework now!

FYI: “According to Consumer Reports, as many as 56% of Americans don’t have a will. Among the notables who died either without a valid will or no will at all are Ross Alexander, Fatty Arbuckle, Anura Bandaranaike, Madhav Prasad Birla, Sonny Bono, George Brent, Lenny Bruce, Jacob A. Cantor, Kurt Cobain, Russ Columbo, Sam Cooke, James Dean, Sandy Dennis, John Denver, Divine, Duke Ellington, Cass Elliot, Chris Farley, Bobby Fischer, Redd Foxx, Mary Frann, James A. Garfield, Marvin Gaye, Ulysses S. Grant, Billie Holiday, Buddy Holly, Shemp Howard, Howard Hughes, Andrew Johnson, Florence Griffith-Joyner, Martin Luther King, Jr., Ernie Kovacs, Harry Langdon, Bruce Lee, Abraham Lincoln, Peter Lorre, Jayne Mansfield, Rocky Marciano, Karl Marx, Steve McNair, Sal Mineo, Carmen Miranda, Keith Moon, Rosa Parks, Pablo Picasso, Mihajlo Idvorski Pupin, Tupac Shakur, Don Simpson, Anna Nicole Smith, William Desmond Taylor, Sharon Tate, Tiny Tim, Ritchie Valens, Hervé Villechaize, Barry White, and Jimmy Witherspoon.” RE: http://en.wikipedia.org/wiki/Will_%28law%29

Modern Elephant Ivory and Big Game Hunters: Can We Sell Ivory?

markcgrove — Thu, 05 Jan 2012 19:54:36 +0000

Big game hunting is not for the budget conscious; permits can cost more than a new car. It just depends on the game animal chosen. In some districts of Africa elephants are numerous and hunting is allowed by permit. The meat is harvested and distributed to the villages and the successful hunter can return to the United States with the trophy, including the tusks, but s/he cannot sell or donate the ivory for as long as s/he lives. Enrichment is forbidden. However upon the hunter’s death the ivory can be sold or donated freely within the U.S.

Amazing! => …………………….. LikeCool.com

markcgrove — Sat, 31 Dec 2011 14:38:17 +0000

LikeCool.com is a home magazine entertainment site with products and pictures that amaze the unamazable.

Got Beaver?

markcgrove — Thu, 29 Dec 2011 14:59:42 +0000

When Europeans first arrived in North America, the landscape was much different. Instead of free-flowing streams descending from high elevation to the sea, the flow of water was pooled from the Piedmont to the lowlands, like pearls on a string. Beavers created the pearly ponds for themselves but all the creatures benefited. So, the lay of the land we know today is not what our forefathers laid eyes one 500 years ago. Read this article on Discovery News.

Renewed Despotism: Russian Gangster Vladimir Putin

markcgrove — Sat, 03 Dec 2011 12:01:49 +0000

Got cash? Looking for emerging markets with a substantial upside? Beware of Russia. Emerging market it is, but the consistent return provided by ETF”s is fraught with high risk. Just as other nations have allowed leaders to rise to power for a variety of reasons (think Mao, Lenin, Hitler, Hussein, Ahmadinejad, Kim Jong-il, etc.), Russia seems to be mesmerized by a shirtless gangster with organizational skills – Vladimir Putin. Read this Associated Press story by MARIA DANILOVA. And do yourself a favor: Do Not Invest In Russia!

The Geography of a Woman

markcgrove — Fri, 02 Dec 2011 12:28:55 +0000

GEOGRAPHY OF A WOMAN

• Between 18 and 22, a woman is like Africa – half discovered, half wild, fertile and naturally beautiful!

• Between 23 and 30, a woman is like Europe – well-developed and open to trade, especially for something of real value.

• Between 31 and 35, a woman is like Spain – very hot, relaxed, and convinced of her own beauty.

• Between 36 and 40, a woman is like Greece & gently aging, but still a warm and desirable place to visit.

• Between 41 and 50, a woman is like Great Britain, with a glorious and all-conquering past….

• Between 51 and 60, a woman is like Israel – has been through war, doesn’t make the same mistakes twice, and takes care of business.

• Between 61 and 70, a woman is like Canada – cool, self-preserving, but open to meeting new people. After 70, she becomes Tibet – wildly beautiful, with a mysterious past and the wisdom of the ages…. an adventurous spirit and a thirst for spiritual knowledge.

THE GEOGRAPHY OF A MAN

• Between 1 and 80, a man is like Iran – ruled by a couple of nuts.

Boomer Collectibles: Sell Now Before it’s Too Late

Mark — Fri, 02 Dec 2011 04:01:43 +0000

The boats are leaving port, people; pay attention to what’s happening all around you.

I’m talking about the Boomers. They’re growing old, down-sizing, divesting, even beginning to die off in ever-growing numbers. All of that stuff that they are/were collecting that reminded them of their childhood is fast becoming passé. The generations behind them could give a twit about coonskin caps, Roy Rogers lunch pails, or (danger! danger! Will Robinson!) Lost In Space memorabilia. Consign it to auction now or your kids will wonder which part of your brain was damaged as they dump all of that junk into the nearest landfill.

The Boomers’ parents hoarded stuff, too. Americana collectibles, for instance, was one of their strong favorites, which is practically a dead-in-the-water category right now. Think: butter molds, cut glass, souvenir spoons, etc. Those folks (the Boomers’ parents) are in their high 70′s, 80′s, or 90′s now – or they have already passed on. Consequently, the Boomers are the ones stuck with their parent’s stuff, and they don’t want butter molds!

Get a grip on reality, people. Stop buying all of the collectible crap that piles up along the wall until it threatens to cascade onto passersby. Furnish your home with top quality furniture, Oriental rugs, and art, and then stop. Put the rest of your assets into annuities, bonds, stocks, or other assets that don’t accumulate dust.