Did the Estate of Stan Musial Make a Big Tax Mistake?

Hundreds of items owned by the estate of former St. Louis Cardinal and current hall-of-famer Stan Musial were recently sold off in an online auction, which fetched nearly $1.2 million.  Because the auction fetched double what was expected, the estate of Stan “the Man” may have made a crucial mistake.

If the memorabilia sale was double what was expected based on the estate appraiser’s valuation and not the auction house’s valuation, then the estate could find itself with a hefty tax bill.  Because the estate may have significantly undervalued assets such as a World Series ring and a letter from Ty Cobb, the estate may have realized an immense capital gain, resulting in an immense taxable gain to the estate.

See Tony Nitti, Did the Sale of Stan Musial’s Memorabilia Give Rise to a Hefty Tax Bill?, Forbes, Nov. 13, 2013.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.