Comments:
That's meaningless
People who want to contribute $5M to a charity don't need a watch auction to do that. On the other hand, people who want the #1 piece of a 170 super limited edition have no other choice.
Agree, that's precisely the point -- not the market value of a 5711 in steel, but the unprecedented result obtained for charity by Patek and Tiffany👍
Sure, in fact kudos also to Phillips and Mr. Bacs today — this type of result could hardly have been achieved without any of these players👍
Definitely, of course Patek but chances are that even a different auction house might have not delivered at this level here…This entire sale was organized incredibly well (and in less than a month)!👍
Amazing that `Phillips did not waive the Hamer fee considering it was a charity benefitting or at least pay the Hamer fee to the charity..they received loads
Of free publicity
Please Karl, you are a serious collector who received some of the best watches from Patek, you know this makes no sense and is *factually* wrong. Phillips DID devolve the buyer's premium to the charity, which received the full $6.5M ;-) Enjoy!
Likely!
How does that work in an auction? Any value paid over upper estimate is donation to the charity? Value over msrp? Why are all these other nautilus going for crazy money in subsequent lots? They aren't for charity cause. Just big money sticking around in the room?
Did some reading
Phillips answered my question in the fine print... for everyone else...
Under IRS regulations, a deduction will be limited to the excess of the lot’s hammer price paid over its fair market value. Phillips good faith estimate of the Lot’s fair market value is USD $52,635.
Under IRS regulations, a deduction will be limited to the excess of the lot’s hammer price paid over its fair market value. Phillips good faith estimate of the Lot’s fair market value is USD $52,635.
Hmm…
So the amount over that $52k is deductible? Amazing the watch sold for 100x over retail!! Bravo!! For charity!!
I think hammer price minus the market value..
So $6.5m minus the $53k is donation per IRS rules? Interesting Phillips says market value is 52k. That is maybe where the irs could make an argument of something fishy in taxable deductions.
I believe the deduction is limited to the fair market value of the object purchased, not the excess of the sale/purchase price OVER the fair market value
I think it is the opposite, namely that a deduction can be claimed on the purchase price *minus* the fair market value (also by logic, that seems to me the amount that one is effectively giving to charity...).
From Phillips' Catalog Essay for this lot:
"Subject to local laws, the buyer of this Lot may be entitled to claim a charitable contribution deduction. Under IRS regulations, a deduction will be limited to the excess of the lot’s hammer price paid over its fair market value. Phillips good faith estimate of the Lot’s fair market value is USD $52,635."
"Subject to local laws, the buyer of this Lot may be entitled to claim a charitable contribution deduction. Under IRS regulations, a deduction will be limited to the excess of the lot’s hammer price paid over its fair market value. Phillips good faith estimate of the Lot’s fair market value is USD $52,635."
Thanks for sharing this -- an amazing result for an amazing cause, that goes even beyond what we were expecting! Let me once again congratulate Patek, Tiffany, and most of all, The Nature Conservancy on this EPIC result! FabR.
Bizarre things occur at (or near) market tops.
I’m not a clairvoyant, and granted this was for charity, but many years from now I’m pretty confident people will point to this sale as one of the benchmarks that signaled the top. But for now there’s apparently still plenty of punch in the bowl. Cheers!🥂
I wonder if the charity will receive...
... the total amount the buyer pays (ie, including the buyer's premium) or 'just' the 5.35m at which the lot was sold. Interesting to hear Aurel saying 'I'm selling at' X and then 'sold at' X and then seeing a 'sale price' which is X + 25% or so...
Yes, Mr. Bacs announced that Phillips will also devolve its buyer premium to charity. Hence The Nature Conservancy, which was technically the consigner of this lot, will receive the full $6.5M ;-)
Worked in their favor
The PR generated by this seems to be generating very good premiums for the other lots 👍 knowing they could have kept their premium but instead maximized donation to charity is definitely a nice move.