Personal Property cost unknown

[BLF75]

In 1930 my wife's mother's father bought his daughter a violin, a good quality copy of a Stradivarius student instrument. We just sold it at auction. I'm prepared to pay the capital gains tax, but there are no records of the original purchase and therefore no established basis. What's the best way to proceed?

[MaryK4]

Unfortunately, if you have no documentation it will be very difficult to establish basis.  In this case, if your wife inherited the Stradivarius, you can use the stepped up basis.  The step-up in basis provision adjusts the value, or “cost basis,” of an inherited asset when it is passed on, after death.  (This gets you closer in time.)  You may wan to see if you can get appraisals for when it was inherited and use that as your basis.

[Carl]

Hopefully, you already have such an appraisal. Getting it appraised after it was already sold at auction will be rather difficult, and more than likely impossible since you no longer have possession of it.