fair market value

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Fair Market Value

A subjective estimate of what a willing buyer would pay a willing seller for a given asset, assuming both have a reasonable knowledge of the asset's worth. Fair market value is important in both law and accounting. In the former, it is often used in assessing damages as the result of a lawsuit. In the latter, determining the fair market value of an asset (e.g. after depreciation) is important to determining the amount of tax owed on it.

fair market value

The price at which a buyer and a seller willingly consummate a trade.

Fair market value.

Fair market value is the price you would have to pay to buy a particular asset or service on the open market.

The concept of fair market value assumes that both buyer and seller are reasonably well informed of market conditions. It also assumes that neither is under undue pressure to buy or sell, and that neither intends to defraud the other.

fair market value

The amount that a willing buyer would pay a willing seller for property after reasonable exposure to the marketplace.

Fair Market Value (FMV)

The amount at which property would change hands between a willing buyer and a willing seller, neither being under compulsion to buy or sell and both having reasonable knowledge of the relevant facts.
References in periodicals archive ?
S, Canada and China, OnStar is currently available on more than 45 MY 2012 GM models, as well as available for installation on most other vehicles already on the road with OnStar FMV.
The Tax Court has ruled (and the Ninth Circuit agrees) that the FMV of the distributed property is determined as if it were sold in its entirety, even though the distributee shareholders may ultimately receive property of lesser value.
Another important aspect of this BCT FMV team oriented course is the continued familiarization of the FMV analysts on the IWS with its robust capabilities and software suite specifically tailored for FMV exploitation and other IMINT applications.
This distortion makes the FMV method more attractive to taxpayers that acquire overseas assets.
Historically, FMV has financed its operations only with its own funds, and as stated in its inception law, it automatically capitalizes all its profits.
To help consumers determine whether their current vehicle is compatible with OnStar FMV, OnStar has launched an online compatibility tool called "Vehicle Selector".
Call options issued to employees or independent contractors in connection with the performance of services do not constitute a second class of stock if the call options are not transferable and do not have a readily ascertainable FMV at the time the option is issued under Sec.
Capital gain property means any capital asset or property used in the taxpayer's business, the sale of which at its FMV, at the time of donation, would have resulted in gain that would have been long-term capital gain.
Thus, if the basis of an asset exceeds its FMV on the date a gift is made and the donee subsequently sells the asset for a gain, he or she uses the donee's basis in determining gain; any appreciation in the asset's value will be taxed to the donee.
However, it can also be reasonably argued that the consideration should not include liabilities in excess of the property's FMV (at least in the case of recourse liabilities).
FMV must be distinguished from other types of value such as insurable value, investment value, property tax value and liquidation value.
The precision that companies must have when calculating FMV requires an intricate combination of physician qualifications and benchmarking data.