I saw a presentation by Julie K. Boatman of the AOPA at the Garmin store in
Chicago, and she addressed this issue.

IIRC, she said there is one value, which is the sum of the parts of the
airplane.

Then there is another, which is what the airplane might sell for.

Finally, there is a valuation that the IRS will accept for tax purposes. And
it is quite a bit lower than the other two valuations...


wrote in message
...
Robert M. Gary wrote:
On Nov 22, 11:25 am, wrote:
Mike Noel wrote:
Any idea what the tax value will be on the AOPA Cardinal? The latest
AOPA
mag claims about 350K has been invested by various suppliers in the
plane.
If the tax man thinks it is worth 350K, wouldn't someone need to
shell out
nearly 100K in taxes to claim it?

When you win something you're taxed at the fair market value.

For something new, that's usually the retail price.

For something like the AOPA Cardinal, it is the going price for a
restored Cardinal.

If I won it, the first thing I'd do is go get 3 professional
appraisals,
throw away the highest, and send the IRS (and State in my case) the
tax on the average.

AOPA is also required to supply the value to the IRS. They always low
ball it. If you want to challenge it you'll need to do that formally
with the IRS. Whenever large prizes like this are awarded the IRS is
involved.

What do you think the professional appraisal would be for?

If the AOPA value was less than the appraisal, what do you imagine
I would do with the appraisal?

The IRS wants tax on winnings, no ****?

--
Jim Pennino

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