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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

fair market value

The price at which a buyer and a seller willingly consummate a trade.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

fair market value

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

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

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.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
"The Quezon City Council had recently been informed that property owners in the city received letters from the City Assessor's Office saying that adjustments in the fair market values will take into effect in January 2019.
The legislative body explained that, in 2016, Bautista requested in a letter for the immediate update of fair market values of real properties in Quezon City following directives sent by the Department of Interior and Local Government (DILG) and the Department of Finance (DOF).
The city last raised its property values in 1996 and was long overdue in updating its fair market values.
If the outstanding debt exceeds the property's fair market value, the excess is treated as debt forgiveness income.
However, if at any time the property's adjusted basis exceeds its fair market value and the mortgagee can establish any portion of the excess will not be collected from the mortgagor, the excess can be treated as a worthless debt under section 166 and the property's basis reduced accordingly.
The term, fair market value (FMV) assumes the business to be on-going and offered for sale in the marketplace for a reasonable period of time.
Valuations are necessary for various reasons, but, most importantly, a comprehensive estimate of fair market value is a measure of foresight, business expectations and future economic returns to the owner.
For example, assume that a shareholder organizes a corporation and contributes as its only asset a building with a basis of $50 and a fair market value of $100; the property is subject to a mortgage debt of $90.
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.
If each property is subsequently sold for its fair market value of $1 million, each corporation incurs a loss of $1 million.
393 (2008) still stands and that a taxpayer "may carry its burden of establishing manifest error in an assessment by [the county by] showing only that it is substantially higher than the fair market value of that property." Petitioner states that the additional language added to Code 58.13984(B) is merely instructional by the General Assembly "on the various ways in which a taxpayer could meet its burden of proof."
96 (2015) that the "amendment makes it clear that it is no longer an option for the taxpayer to prove manifest error solely by showing a sufficient disparity between fair market value and assessed value without also showing that the taxing authority employed an improper methodology."