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 ?
IRC section 267 seems to apply without regard to the relationship between FMV and the sales price.
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.
When the option becomes transferable, it could possibly be treated as a second class of stock if the call option is substantially certain to be exercised and has a strike price substantially below the underlying stock's FMV on the date that the call option is issued or transferred by an eligible shareholder to a person who is not an eligible shareholder.
The parent's percentage of the FMV increment and goodwill is recognized.
If the disposition occurs in the donor's tax year in which the donation is made, the donor's deduction generally is basis, not FMV.
FMV, typically, is determined using all or parts of three general approaches: market comparable, income and underlying assets.
Major changes in companies' FMV calculation methods have impacted the amount of compensation doctors receive.
Knowledge and skills requirements for the consulting roles are already established to FMV in as short a time as possible to implement blanket and thus bring in the resources needed to manage integration projects.
Specifically, the nonexempt donees (the taxpayers' four sons and four generation-skipping transfer (GST) tax trusts established for their benefit) were to receive LP interests with an aggregate FMV of up to $6,910,933.
The value for such purposes is the date-of-death fair market value (FMV) (or, if an election is made under IRC section 2032, the FMV on the "alternative valuation date," six months later).
If you borrowed $100, you would have cash assets with an FMV of $100, liabilities of $100 and a net worth of zero.