Sweepstakes win - classic car. 1099 = 100K. Similar at dealers = 25-50K. Sold to original owner @ 45K. What proof is acceptable to set FMV to 45K? No appraisal done.

[Laine3]

We have screenshots of prices at classic dealers showing similar around 25-45K.

[PattiF]

If you disagree with the prize value reported on the 1099-MISC, the IRS asks that you attach a copy of the 1099-MISC and a written statement to your tax return, and mail the return instead of e-filing.  The written statement should have a concise explanation of why you are reporting a different value, but don't include other proofs.  If the IRS has questions later, or if they lose your attached statement, they will send a letter and then you would send them proof (such as, copies of web pages, store ads, or catalog prices showing that the item's fair market value is less than reported on the 1099-MISC.)

If you want to e-file, report the lower value but expect to get an inquiry letter in a few months.  

[Opus 17]

The definition of fair market value is the price in a free and open sale whether the parties are unrelated, both parties have fair access to relevant information, and neither party is coerced or under pressure to sell or buy.  It would seem to me that in this situation, the sentimental value might even mean that the true FMV is less than $45k.  It sounds like both the sale and the local ads do a good job of documenting the true FMV in this case.  It’s always tricky with the IRS if audited because you never know who you will get as an auditor.