[Code of Federal Regulations]
[Title 26, Volume 14]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR20.2031-6]

[Page 269]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 20_ESTATE TAX; ESTATES OF DECEDENTS DYING AFTER AUGUST 16, 
1954--Table of Contents
 
Sec.  20.2031-6  Valuation of household and personal effects.

    (a) General rule. The fair market value of the decedent's household 
and personal effects is the price which a willing buyer would pay to a 
willing seller, neither being under any compulsion to buy or to sell and 
both having reasonable knowledge of relevant facts. A room by room 
itemization of household and personal effects is desirable. All the 
articles should be named specifically, except that a number of articles 
contained in the same room, none of which has a value in excess of $100, 
may be grouped. A separate value should be given for each article named. 
In lieu of an itemized list, the executor may furnish a written 
statement, containing a declaration that it is made under penalties of 
perjury, setting forth the aggregate value as appraised by a competent 
appraiser or appraisers of recognized standing and ability, or by a 
dealer or dealers in the class of personalty involved.
    (b) Special rule in cases involving a substantial amount of valuable 
articles. Notwithstanding the provisions of paragraph (a) of this 
section, if there are included among the household and personal effects 
articles having marked artistic or intrinsic value of a total value in 
excess of $3,000 (e.g., jewelry, furs, silverware, paintings, etchings, 
engravings, antiques, books, statuary, vases, oriental rugs, coin or 
stamp collections), the appraisal of an expert or experts, under oath, 
shall be filed with the return. The appraisal shall be accompanied by a 
written statement of the executor containing a declaration that it is 
made under the penalties of perjury as to the completeness of the 
itemized list of such property and as to the disinterested character and 
the qualifications of the appraiser or appraisers.
    (c) Disposition of household effects prior to investigation. If it 
is desired to effect distribution or sale of any portion of the 
household or personal effects of the decedent in advance of an 
investigation by an officer of the Internal Revenue Service, information 
to that effect shall be given to the district director. The statement to 
the district director shall be accompanied by an appraisal of such 
property, under oath, and by a written statement of the executor, 
containing a declaration that it is made under the penalties of perjury, 
regarding the completeness of the list of such property and the 
qualifications of the appraiser, as heretofore described. If a personal 
inspection by an officer of the Internal Revenue Service is not deemed 
necessary, the executor will be so advised. This procedure is designed 
to facilitate disposition of such property and to obviate future expense 
and inconvenience to the estate by affording the district director an 
opportunity to make an investigation should one be deemed necessary 
prior to sale or distribution.
    (d) Additional rules if an appraisal involved. If, pursuant to 
paragraphs (a), (b), and (c) of this section, expert appraisers are 
employed, care should be taken to see that they are reputable and of 
recognized competency to appraise the particular class of property 
involved. In the appraisal, books in sets by standard authors should be 
listed in separate groups. In listing paintings having artistic value, 
the size, subject, and artist's name should be stated. In the case of 
oriental rugs, the size, make, and general condition should be given. 
Sets of silverware should be listed in separate groups. Groups or 
individuals pieces of silverware should be weighed and the weights given 
in troy ounces. In arriving at the value of silverware, the appraisers 
should take into consideration its antiquity, utility, desirability, 
condition, and obsolescence.

[[Page 270]]