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 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?