The court found that Trustmark's comparable sales approach was not probative of fair market value
because six of the ten properties were appraised using foreclosure sales as comparable sales.
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.
Paper gain of $188,972 at a fair market value
To illustrate, assume that (a) in 1998, an optionee is granted an ISO to purchase stock at $5 per share; (b) in 2000, the optionee exercises when the stock's fair market value
is $100; and (c) in 2005, the optionee sells the acquired stock when the fair market value
Citing Estate of Jung, 101 TC 412 (1993), the court stated,"[T]ax courts have drawn a distinction between subsequent events that affect fair market value
as of the valuation date and later-occurring events that may be considered as evidence of fair market value
as of the valuation date.
Because, warns trusts and estates attorney Bruce Wexler of New York law firm Loeb & Loeb LLP, you must outlive the trust to reap its tax benefits, if not, your home goes back into your estate, where it will be taxed on its then-current fair market value
The contract should also: (1) be in writing and signed by the parties, (2) specify the services to be provided, (3) be for a term of not less than one year, (4) not base compensation on volume or value of referrals or other business, (5) determine compensation in advance based on fair market value
and in an arm's length transaction, and (6) not involve promotion or counseling of activities or business arrangements that violate state or federal law.
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.
The applicant or spouse must then show by clear and convincing evidence that he/she intended to obtain fair market value
for the transfer but did not, or that the purpose of the transfer was not to qualify for Medicaid.
To comply with IRS guidelines, appraisals of the equipment may be needed to arrive at fair market value
Thornton suggests that the fair market value
of the practice or services rendered must be considered in order to determine if the antikickback law has been violated.