Pretty basic tax law on FMV here. MSRP "establishes" nothing. If the OP got the car and immediately sold it for $30K it is the same result. The IRS is not going to be able to avoid the problem of an immediate sale at arm's length--nor will they try. Valuation problems come up when someone sells it to a related party or the valuation is achieved by qualified appraisal or the person keeps the non-monetary prize. The IRS could use MSRP as it's ARGUMENT if the OP immediately sold the car to his son or his LLC or something, but, even then, who pays MSRP for a car?
It's not a matter of belief, it's a matter of the code, of the regulations and of Supreme Court precedent. (I'd include the income publication where prizes and awards are mentioned and the instructions on the 1099 itself, but those aren't really the law.)
Or, go with FlyingRon who seems to know without any support.
By the way, the IRS's thought on if a sale is a good way to value property is:
The cost or selling price is a good indication
the property’s value if:
• The purchase or sale took place close to
the valuation date in an open market,
• The purchase or sale was at
“arm’s-length,”
• The buyer and seller knew all relevant
facts,
• The buyer and seller did not have to act,
and
• The market did not change between the
date of purchase or sale and the valuation
date.
While we're at it, if I buy a new car for business, can I depreciate it at MSRP or do I have to use what I paid for it? (Let's say I buy it and then immediately put it into the business. Maybe to increase my capital account so I can take a loss on an S-corp.)
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For more info, see:
Regs. §1.74-1(a)(2).
Rev. Rul. 69-510, 1969-2 C.B. 23.
Rev. Rul. 55-638, 1955-2 C.B. 35.
Rev. Rul. 67-40, 1967-1 C.B. 19.
McCoy v. Comr., 38 T.C. 841 (1962).
Wade v. Comr., T.C. Memo 1988-118.
Turner v. Comr., T.C. Memo 1954-138.