Tag Archives: International Society of Appraisers
EstateSalesNews.com has been honored by asking to speak at this years International Association of Appraisers conference.
We will be speaking about selling out the house and how to avoid the pitfalls of estate sales.
The conference this year is in Chicago, IL.
We will be addressing that conducting estates sales are a business, not a hobby.
Understanding the estate sale contract.
Why ISA (International Society of Appraisers).
What to do with left overs from estate sales and wearing three hats for one client.
We are excited to have this opportunity to speak about a subject we embrace and encourage and to such a prestigious group as the ISA.
Today is the start of another weekend of estate sales and their are thousands taking place across the country.
Please look at these websites for estate sales in your area.
Creates De Minimus Exemption; Clarifies Antique Exemption from Director’s Order 210
On July 29, the Fish and Wildlife Service (FWS) released proposed regulations affecting the sale, transfer, donation, or other disposition of African elephant ivory. The regulations, long expected in the personal property community, prohibit the “sale or offer for sale of ivory in interstate or foreign commerce and delivery, receipt, carrying, transport, or shipment of ivory in interstate or foreign commerce in the course of a commercial activity”. There are, however, several notable exceptions proposed in the regulation.
De Minimus Exemption
FWS has proposed a de minimus exemption for those items which contain a limited amount of ivory that is not the primary driver of the item’s value. Property that meets the de minimus exemption must meet the following requirements:
- Items located in the United States, if the ivory was imported into the United States prior to January 18, 1990 (the date the African elephant was listed in CITES Appendix I) or was imported into the United States under a CITES pre-Convention certificate with no limitation on its commercial use;
- Items located outside the United States, the ivory is pre-Convention (removed from the wild prior to February 26, 1976 (the date the African elephant was first listed under CITES));
- The ivory is a fixed component or components of a larger manufactured item and is not, in its current form, the primary source of value of the item;
- The manufactured item is not made wholly or primarily of ivory;
- The total weight of the ivory component or components in the item is less than 200 grams;
- The ivory in the item is not raw; and
- The item was manufactured before the effective date of the final rule for this action.
FWS provides examples of items it expects to meet the de minimus exemption, such as “the ivory veneer on a piano with a full set of ivory keys”, “insulators on old tea pots, decorative trim on baskets, and knife handles, for example”. FWS also lists examples of items it does not expect to meet the de minimus exemption requirements, such as “chess sets with ivory pieces”, “an ivory carving on a wooden base”, “ivory earrings or a pendant with metal fittings”, or “figurines, netsukes, and jewelry”.
The proposed regulation retains an exemption for bona fide antiques, in line with Directors Order 210 as amended on May 15, 2014. This exemption allows for items that are more than 100 years old to be “sold or offered for sale in interstate or foreign commerce and delivered, received, carried, transported, or shipped in interstate or foreign commerce in the course of a commercial activity”. The proposed regulation clarifies, however, that items which were “imported prior to September 22, 1982, and items created in the United States and never imported” are not required to demonstrate that the antique was imported through an endangered species “antique port”. The enumerated requirements for claiming the antique exemption are as follows:
- It is 100 years or older;
- It is composed in whole or in part of an ESA-listed species;
- It has not been repaired or modified with any such species after December 27, 1973; and
- It is being or was imported through an endangered species ‘‘antique port.’’
NOTE: Under Director’s Order No. 210, as a matter of enforcement discretion, items imported prior to September 22, 1982, and items created in the United States and never imported must comply with elements A, B, and C above, but not element D.
As part of substantiating that an item is 100 years or older, those wishing to sell may use a “qualified appraisal”. However, it is unclear under the proposed regulation whether the use of this term ties back to its use for Internal Revenue Service (IRS) noncash charitable contributions. It is also unclear whether the “qualified appraisal” referenced here must be performed by a “qualified appraiser”, as the term is used at IRS, or if other qualifications would be used to determine an appraiser’s ability to perform a “qualified appraisal” for the purposes of this proposed regulation.
FWS enumerates four requirements for a musical instrument containing worked ivory to be exempted from prohibitions on import or export. It also reinforces that owners of these musical instruments must provide documentation to support that the ivory was obtained legally prior to February 26, 1976, though FWS clarifies that:
[T]here is sufficient information to show that the ivory was harvested (taken from the wild) prior to February 26, 1976, even though the instrument may not have been manufactured until after that date. It also means that there is sufficient information to show that the ivory was harvested in compliance with all applicable laws of the range country and that any subsequent import and export of the ivory and the instrument containing the ivory was legal under CITES and other applicable laws (understanding that the instrument may have changed hands many times before being acquired by the current owner).
The stated requirements for musical instruments are as follows:
- The ivory was legally acquired prior to February 26, 1976;
- The instrument containing worked ivory is accompanied by a valid CITES musical instrument certificate or equivalent CITES document;
- The instrument is securely marked or uniquely identified so that authorities can verify that the certificate corresponds to the musical instrument in question; and
- The instrument is not sold, traded, or otherwise disposed of while outside the certificate holder’s country of usual residence.
In line with Directors Order 210, items containing ivory that are imported or exported as part of an inheritance or household move are exempt from the prohibition, provided that they are for personal use only and accompanied by a valid CITES pre-Convention certificate. However, the regulation clarifies that ivory imported or exported under this exemption “could not subsequently be sold or offered for sale in interstate or foreign commerce or delivered, received, carried, transported, or shipped in interstate or foreign commerce in the course of a commercial activity, even if it qualified under the de minimus exception.” [Emphasis added.] This does not appear to preclude donations of items which are availed under this exemption.
Donations of Items Containing Ivory
Finally, FWS makes clear in the proposed regulation that “[t]he donation of an item consisting of or containing ivory also would not be considered commercial activity, even if the donor qualified for a tax benefit where the tax benefit is not income.” This makes clear that donations of items containing ivory are permissible under the regulation, and can be done to secure a tax deduction for the donor.
ASA continues to review the proposed regulation, and plans to file comments with FWS. For those who wish to file comments, they are due no later than September 28, 2015. To read the full proposed regulation, click here.
Estate Sales News is very appreciative to Judy Martin, ISA, CAPP for providing this article for us to share with you.
Lately, I have been thinking about the “COST” of conducting a house sale. What does it take financially to conduct a sale in someone’s home.
Starting with payroll, in order to have a staff that can work fast and hard both in the set up and the selling of items the conductor needs to pay them a reasonable wage. If you begin at minimum wage – $10.00 per hour and the employee works for 2 days setting up at 6 hours per day as well as two days of the sale at 8 hour minimum, that makes each employee’s wage $200 for the sale. This of course is a sale that is easy to set and sell. If the sale is a large one then you have to figure the payroll just goes up and up. But for this example I am going to use a simple sale – 3 employees (not including the principles of the company) x $200 for the sales is $600 payroll.
Next you will need supplies – a set of 5 non carbon sales books cost $14 approx. You might need 10 total for sale. Plus you need pricing stickers – a pkg of white removable stickers cost $7. each. So for this purpose, a trip to the office supply store will cost you $80.
Then you have to consider the town you are working in – is there a permit needed. Did you cover in the contract that the client pays the permit? If not, that cost can be $60 per sale in a town that requires a permit, such as Oak Park, IL. There goes some more money out of your pocket.
If this is a new business for you, you will need table, cloths, display items, string tags, secured diplay boxes (so your shoppers cannot help themselves) – all costing you more and more money.
And what about after the sale – what does it cost you to get all the items out of the house? How many hours of labor does it take to wrap and take the items that are saleable. How much does it cost to have the refuse taken away? How much does it cost to have a person stay and sweep up after everything is removed? And who is removing the items? A moving company or you in your own vehicle. This all costs money!
Oh, and of course you have to consider the cost of advertising. If you belong to a website, there is a monthly fee for that. If you have a special sale then that cost just went up from maybe $100 a month to an additional $200 just for this one sale – all costs against your profit.
All of these fees and costs do not inlcude: databases you subscribe to, books you buy for research, t-shirts or uniforms you might use, phone service, credit card fees, bank fees, gas, tolls, and all sorts of items you have to take into account when figuring out what commission to charge so that you actually might make some money to put in your own pocket.
The estate sales business is not for the faint of heart. It is also not a charity, it is a business – you are intending to make a profit. When you consider what to charge as your fee, you must consider all of these things and more.
Estate Sales News traveled to the Morgan Park section of Chicago on Tuesday to meet and speak with nationally Judy Martin, a certified appraiser ISA, CAPP, long time estate liquidator and owner of The Perfect Thing, a high end consignment shop in Wheaton, Il. She is a Director of the ISA (International Society of Appraisers) past president 2009-2011, she was a lead instructor for them as well.
Next week she will be conducting an estate sale in Morgan Park for the estate of Jack and Marjorie Simmerling. Jack Simmerling was a well known Chicago artist and he and his wife had many interesting collections. Here is part one of our interview.
One of the guest speakers at the Estate Sales Conference in St. Louis last week conducted by EstateSales.net was nationally known Appraiser Judith Martin ISA CAPP (International Society of Appraisers, Certified Appraiser Personal Property). Her lecture addressed appraising for estate sales and why an estate sales company might need an appraiser.
Ms. Martin has written a very informative and important article for Estate Sales News on USPAP and appraising that will be published here on Monday, April 8th, 2013. We are most appreciative for her time and expertise on a subject of major importance in the estate sales business.
To provide you with some background on Ms. Martin here is some of her information taken from the ISA website.