Won a 2 carat Daniel K engagement ring, how much is it worth?

[itsjustarock]

Hello All,

Let me start off my first post by saying "hi" to everyone. TO make a long story short, I was in the process of shopping for an engagement ring as I plan to pop the big question early next year. I stumbled upon the American Express "mywishlist" contest and somehow won an engagement ring. http://www.mylifemycard.com/mywishlist/media/pdfs/diamond_ring.pdf I cannot begin to articulate my excitement and feel blessed to win. However, after reality has set in, I am faced with a tax issue.

I have incurred a tax liability of $35,500 which I must report on my income tax. However, tax law allows me to dispute the value of the ring with the fair market value. This is where I''m hoping to get some assistance in valuing the ring. Embarrasingly, I must admit I know nothing about Daniel K or diamond rings. The little information I have obtained was through a search on this forum. My rough estimation of a 2 carat diamond ring with the similar qualities is around $15,000 to $20,000(again, my estimation is based on my limited knowledge and may be way off.) Is there a big premium on Daniel K much like there is on Tiffany? Is $38,000 a fair price on the ring I linked or are there online retailers that sell comparable Daniel K rings for less. If its a fair price, I''ll just suck it up and pay the taxes. I am hoping that American express inflated the price for contest/marketing purposes. Any help pointing to websites that sell Daniel K rings or where I can get a feel for the price will be greatly appreciated. Thanks again and I wish you all a wonderful holiday.

 

[Kaleigh]

Daniel K rings go for a high premium. I know the settings alone go for upwards of 6K and that's without the stone. Take a look at Bill Pearlman's site here. He is a PS vendor and carries the Daniel K line. Very high end. We have a store near me and they go for 30K plus. HTH, good luck!!! I would be thrilled if I won one!!!
Welcome to PS

 

[Mara]

wow first off congratulations, how great!!! that must be a stunner!

i am sorry to say but that value seems like it MAY be retail for a 2c daniel K ring, the settings are pricey as Kaleigh noted and i would assume that their diamonds carry some sort of premium too because they are brand name items. can you go into a retail store that carries daniel K to find out pricing? or you could get it appraised also and ask for a REALISTIC appraisal, not retail, maybe that will help you. many times appraisals are inflated for insurance purposes, so i''d check to see what a local appraiser may say. good luck!

 

[itsjustarock]

Thank you. I will check his website.

 

[flutterby]

Congrats with that! WOW! What I wouldnt do to have won that, we tried for the vespa and range rover.....didnt get a thing. I know its alot to claim, but it will be significantly less than buying a ring, one would hope. Congrats, Daniel K is a girls dream!

 

[Demelza]

WOW!!! That''s amazing! Congratulations!!!

Daniel K is a very high end designer and, therefore, you can expect to pay a high premium when buying his jewelry. I don''t know what the mark-up is per se, but it wouldn''t at all surprise me if it was similar to what you would find at Tiffany''s or Cartier. My advice would be to have the ring appraised by an independent appraiser. Be sure to clarify that you do not need a retail replacement value, but a fair maket value appraisal. I can almost guarantee this will be less than 35k American Express. In reality, however, I do believe that is what you would pay if walked into a retailer selling Daniel K.

Amazing story!! Again, congrats on winning an amazing ring!!!!

 

[AndyRosse]

Hey, congrats on winning the Daniel D engagement ring!!

Good luck with the IRS

 

[belle]

wow! i''ve been trying since last year to get SOMETHING from mywishlist...no such luck for me.

that is an amazing ring and an amazing price..even with the tax liability. i hope you will post pictures of the ring once you get it.

congratulations!!

 

[itsjustarock]

Thank you all for the kind words. I just hope my GF will like the ring. I dont think she was expecting an asscher cut as she hinted that she wanted a round solitaire. I dont even think she knows who Daniel K is (or am I just kinding myself?)

 

[belle]

i''m sure she will love it. it will be stunning...very classy and elegant.
hehehehehe...if she has looked at rings or even just bridal mags, she probably knows who daniel k is.

 

[gailrmv]

Congrats!!!! Awesome ring and what a cool story!!
I thought I was pretty informed on jewerly and I hadn''t heard of Daniel K til finding this forum. It may very well be considered similar to Harry Winston, Cartier and Tiffany, but I guess in my region of the country it is just not as big. So yeah, there is some chance she has not heard of it. I think most any woman would be thrilled with that ring, though, name recognition or not.
If it were me, I''d propose with the ring, but mention to her that if her heart is set on a round solitaire (also an awesome choice, but I''m biased) that you could sell the Daniel K and get the round solitaire. Even if you sold it for under retail you could get an amazing solitaire I am sure.
In fact, there may even be a Daniel K vendor that would accept the ring on trade-in for retail value.
Of course, you know you girlfriend''s preferences and we can only guess!
Let us know how it turns out!

 

[laney]

Congrats!!!

I've bid on several things and NEVER win! LOL! Great news.

As for the amount. First thing is get the item appraised by an accredited appraiser. If you do some research you will see that most reputable appraisers also may appear in court to represent the item value for legal purposes. My apprasier (which I located through the pricescope resources) does that as part of her services.

Anyway - go to the appraiser and let them know that you need an appraisal for tax value purposes. This may cost you around $100-125 to get done - give or take. Each apprasier sets their own pricing based on various things.

Anyway - get it appraised. Then you can use that value for your taxes.

At work - my company does give aways. And if the value is over $500 we give our "winner" a 1099 form with the tax liability on it. So should get that for the amount that the company stated - then your apprasial should have the amount that you'll use (assuming it's lower) than the company amount.

My thought is this. Daniel K I know has branded settings. That one could be around 4K ish full retail. But maybe say available for 3400-460o. A 2K assher G-H color and VS2.. hmmm. That will depend on the cut quality as well.. So the appraiser is going to need to help you there as well. The appaiser, once they know what you need the apprasial for will work the you to evaluate the fairest price possible.

Good Luck - and contrats X2

 

[dazzling]

First of all, congratulations! That is so exciting!

This ring is exquisite.

I just wanted to add my 2 cents, as I am the ecstatic owner of a Daniel K. asscher engagement ring (have had it since Nov. 29th).

When I was looking at rings, I was certain that I wanted a beautiful, classic, round brilliant stone in a tiffany-style platinum setting. I had looked at hundreds of settings/diamonds, and my opinion on what I wanted hadn't wavered...but that all changed when I saw the Daniel K rings. The workmanship is unbelievable- from every angle, these rings are works of art. The settings are beautiful and intricate, yet still delicate and not "too busy". I fell in love with the combo of the split crown setting with the smooth, deep look of the asscher, and changed my original plan. My ring has a 1.43 carat asscher center stone, H in color. I have a post floating around somewhere w/ pics... but I just took new pics- I will post in the SMTR forum in the next few days.

Anyway, Daniel K rings must be seen in person to be appreciated... I would recommend looking at his site to see if there is a retailer near you to see what you have won. Also, Daniel K. has a lifetime trade in policy on the center stone... (not the setting though.) If your lady has her heart set on a round stone (and if the setting supports a round stone) you might want to see if you could trade the stone to a round. From the pic on your link, it looks like it might only support a square stone, but hard to tell. Otherwise, as others have said, you could probably find a buyer pretty easily.

Best of luck, and keep us posted!

Debra

 

[MiniMouse]

Wow, what a great win, CONGRATULATIONS. A 2 carat Daniel K...... I''m drooling. It''s a beautiful ring. Give your girlfriend the option to enjoy it or else sell it and buy what she really wants. Maybe go into a shop where they sell Daniel K and see if she likes the ring you''ve won. One thing''s for sure.... you won''t lose money on it if you decide to sell! I''m sure there would be plenty of takers. Good luck and let us know what you decide.

 

[gailrmv]

I am still in awe that you won that beautiful ring!
She might love it even more than the RB she had in mind. It is so lovely, and probably a lot more unique.
Let us know how it goes!

 

[Waited2Long]

Put it on Ebay with a reserve of $40k. If the highest bid is $10k, I would make records and submit that as the "fair market value". If the highest bid is $60k, claim the $35k, buy a round brilliant for the little lady, and keep quiet about everything else!

 

[jlabos]

Congrats my fiancee was trying to win that ring but we couldnt get in.

Good Luck!!

 

[denverappraiser]

rock,

Get it appraised immediately. IRS has some clearly defined rules about this and ‘fair market value’ is a legal term that doesn’t mean what a lot of people think it does. Ebay is irrelevant. This is a very different issue from most of the appraisal assignments that are discussed here and that are seen daily by jewelry stores. Make sure that the date of valulation is the date of the winning, that the value definition used is exactly the IRS def of FMV and that the appraiser is what the IRS calls a qualified appraiser. There are other issues as well and it’s important to get it right if you want to stay out of tax court. All of these details are important and make sure that your appraiser understands that this is a tax matter before you hire them. Lots of appraises, even most, won’t accept this type of work because it is NOT the same assignment as the insurance type question that we get asked so much and they don’t understand the issues. Talk to your tax advisor. You may also find it helpful to peruse www.irs.gov and look up the definitions of ‘fair market value’ ‘qualified appraisal’ and ‘qualified appraiser’.
Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[Shay37]

Can''t help on the tax issues. I just wanted to say you lucky dog you.

Congrats. Your GF is going to be ecstatic when she sees what Santa is bringing her.

shay

 

[BeaudryBabe]

I agree with denverappraiser, ebay is totally irrelevant. That number sounds like an MSRP for a Daniel K that size. I disagree that Daniel K is like a Cartier, Tiffany or Harry Winston. While Daniel K is certainly excellent, out of this world quality it does not, in my opinion, carry the prestige that a Harry Winston or Cartier does.

Either way, it''s a magnificient piece, maybe she will absolutely love it once she gets to see it. I would pay the tax and keep it, it''s a lovely, lovely piece. She will be the envy of all the girls! Take the money you saved and put it towards a house, the wedding or into a savings account.

Congrats!

 

[diamondlil]

I know nothing of the tax issues, but I just wanted to say OMG, that''s incredible!!!!!!

Even if your girlfriend wanted a round, I think when she sees the ring, she is going to be WOWED!!!!!! I hope that you''ll come back and post the details of your engagement and give us some hand pictures.

 

[Scintillating]

Um! WOW!
That's amazing you won a 2carat Daniel K. WOW!
Just pay the taxes on it and count youself lucky you didn't buy it outright, or buy a ring outright.
You're a lucky guy!
And she's a lucky girl.
You've got a GREAT ring - I have no doubt.

You should show it to her, and give her the choice - of keeping it - Or going another way.
Really - their rings are amazing, and I don't know anyone who wouldn't be happy with one.

I agree with whomever said to have it appraised!
Which one did you win?
Daniel K's Website.


Scintillating....

 

[icekid]

holy crap! what I wouldn''t give to win that... we''ve been trying to win stuff on the amex thing since last year too! that''s so cool that you actually won.

I don''t have much else to add, except that ring is GORGEOUS and I''m sure your gf will love it!

 

[phoenixgirl]

Get it appraised. If the number is the same or higher than the $35,5, then I would "suck it up" and pay the taxes. The PDF said that the retail was $38-40k, so I''d just be glad you''re under that number. But I have a feeling the appraisal will come in under the $35k.

 

[itsjustarock]

Thank you all for the kind words and advise. It looks like it''s going to be another 2 weeks before they ship it out. Denverappraiser gave some sound advise, I really appreciate you taking the time to write. Once I receive the ring, I will consult a tax attorney/cpa and will certainly get the ring appraised. I don''t want to undermine the issue of tax as I suspect my liability will be over $10,000 given my tax bracket. I will attempt to post some pictures of the ring once I receive it.

Now, to add a twist to the story, lets just say hypothetically that I already purchased a 1.53 carat Round solitaire 2 weeks prior to the contest. What would you do?

 

[itsjustarock]

BTW, I brought up Daniel K today and got the response "Daniel who?"

 

[Waited2Long]

Date: 12/19/2005 8:41:47 PM
Author: itsjustarock


Now, to add a twist to the story, lets just say hypothetically that I already purchased a 1.53 carat Round solitaire 2 weeks prior to the contest. What would you do?

If you can return it, the choice is obvious. If you can't return it, you're kind of in a hard spot with a 2nd ring that you may find difficult to sell for as much as it's going to cost you in taxes to keep.

Become a Mormon and get a 2nd wife?

 

[decodelighted]

Date: 12/19/2005 8:41:47 PM
Author: itsjustarock

Now, to add a twist to the story, lets just say hypothetically that I already purchased a 1.53 carat Round solitaire 2 weeks prior to the contest. What would you do?

Oy. And it''s a round solitaire she''s had her eye on, right? Oskabobola! Okay, if I was the lady in question - at this point I''d want you to

A) propose with both rings
B) let me pick
C) figure out the finances/tax impact LATER & together

Unless you still have a chance to return the first ring? In which case, who could pass up a 2 ct Daniel K rock?

Crazy thought. If you know what you already have is exactly what she wants - donate the Daniel K to a charity to auction it off & take the 38K tax deduction.

 

[devientdrow]

How much exactly would you end up paying in taxes??? I''m just curious on how much it would come out to even paying the taxes...it may be worth it......also on the page you linked it mentioned a price of $2500? What is that for?

 

[WTNLVR]

I saw the $2500.00 and couldn''t understand that either. What is that?

I would show her both rings, see which one she liked better. If it was the one you bought that she didn''t like, I''d return it if possible. Otherwise, use the center stone in a RHR or pendant. She is the luckiest girl around either way IMO!!Congrats!