Jeff Miller wrote:

Peter Charles wrote:

Provided the auction isn't rigged and there are enough bidders, an
auction is usually a good indicator of fair market value.

hmmm... i went to a coastal conservation association banquet. there was
an auction. 400 potential bidders present. $50 prints brought $400;
nothing sold anywhere the normal retail or even wholesale. in these
parts, auctions are considered opportunities to get things at bargain
prices...though, on occasions they seem to become soap boxes for
personal pride or wants, and bids unexplainably skyrocket out of the
range of reason. usually, an auction is a good method of getting
something sold...i'm not sure i would trust it as a method of
establishing fair market value.

Apples and oranges. There is a difference between a "vanity" auction
fundraising event where the proceeds go to charity and a hardnosed,
strictly business auction. In Illinois when you buy a property at
auction the value of that property for tax purposes is set to exactly
the auction price by law.

--
Ken Fortenberry