The city last raised its property values in 1996 and was long overdue in updating its fair market values
The county's expert was more credible than the taxpayer's expert as to the fair market value
of the property in question.
Let's take a look at the classic definition of fair market value
in Revenue Ruling 59-60:
The new alternative method establishes fair market value
"through an approximation that is based on the interpolated terminal reserve at the date of the conversion, plus the proportionate part of the gross premium paid before the date of conversion which covers the period extending beyond that date," officials write.
The estate tax, based on the fair market value
at date of death, taxes any unrealized capital gain.
For example, Notice 2005-1 states that "the amount required to purchase stock under the option (the exercise price) may never be less than the fair market value
of the underlying stock on the date the option is granted."
* Purchasing at a negotiated fair market value
or for the fixed residual negotiated at the time of the original contract preparation.
This "disallowance" does not apply, however, with respect to (1) any replacement property received by the taxpayer before the end of the identification period and (2) with respect to any property received before the end of the 180-day replacement period as long as the taxpayer received before the end of the replacement period at least 95 percent of the aggregate fair market value
of all identified replacement properties (the "95-percent rule").
PTMS 3.4 provides a variety of options for determining fair market value
for real property.
Who wants to pay fair market value
for condemned property?
But how many local governments tax the full or fair market value
of real estate?