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This quote is in the context of IRS Publication 561, which provides guidance for determining fair market value for charitabledonations; therefore, this quote must be understood within that specific context and intended use. Talk to your client to identify the scope of work. In damage loss claims these can often be broad.
For instance: Replacement Cost Value is used when a collector needs an appraisal for insurance coverage. Fair Market Value is used when a collector is settling an estate, needing equitable distribution, or making a charitabledonation. An object can have different values, depending upon the function of the appraisal.
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