Hi. Soon I'll be gifting a piece of jewelry to my (grown) child. As a result, I'll need to calculate fair market value to pay the gift tax. Here are my questions:
1. Is it alright to calculate Fair Market Value with the latest (20-year-old) appraisal certificate I have on the item? If not, how *new* do appraisals have to be to satisfy the IRS?
2. Since we've long lost the original sales receipt (it's been in the family since the 1900s), what other ways are there of estimating [and documenting!] the cost basis of the jewelry so if my child ever sells it, it's not necessary to pay total capital gains?
Many Thanks.