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 ?
Jointly approved by the AICPA, ASA, Canadian Institute of Chartered Business Valuators (CICBV), NACVA, and IBA, this Glossary of Business Valuation Terms provides some slight variations to the old definition of fair market value as set forth by Revenue Ruling 59-60.
One way to get a good fair market value in a lease is to have the property appraised.
Paper gain of $185,696 at a fair market value of $13.
Essentially, the optionee purchases all exercised shares at the strike price, and simultaneously relinquishes a portion of these shares with a fair market value equal to the total strike price and, often, applicable taxes.
As in the case of the family limited partnership, the value of each annual gift will be lower than fair market value, since it represents only fractional ownership in the property.
Any determination as to fair market value of the services of the medical director should take the new time requirements and accountabilities under PPS into consideration.
taxpayer engaged in the real estate business owns two properties, Blackacre and Whiteacre, each of which has a fair market value of $1 million and an adjusted basis of $100,000.
Uncompensated value equals the fair market value of the asset transferred minus the value of what was received for the asset.
However, some states believe that fair market value does not fully compensate an owner whose property is taken by eminent domain.
In the following example, fixed-site environmental liability insurance enabled an owner to sell a contaminated property at fair market value.
Some taxpayers then have claimed deductions for the cars' retail values, which is typically much more than their actual fair market value.
The software features the "optimization" method of business valuation to determine the optimum fair market value of any business operation or income property.