"George Patterson" wrote:
Basically, you're stuck with what they paid for the plane, plus
the price of all
the add-ons. Just as if you bought the plane for that price and
paid to have all
that work done. You can try getting an appraiser to produce a
value for the
plane, but that won't fly with the State of New Jersey (dunno
about the Feds).


That ain't the IRS position. The number on Form 1099 is to be fair
market value, and indeed the value of all the "stuff" added may not
reflect final FMV, as other posters have noted. What does often
happen with issuers of 1099s is they think if they don't put an
"optimum value" on the 1099, they get into trouble with IRS.
Nonsense, as they have no enforcement program for this on the payer
side, and in fact IRS would rather not get into audit hassles where
the winner claims a justified, lesser value on Form 1040.

Fred F.