Fair Market Value

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Fair Market Value

The amount for which real property or Personal Property would be sold in a voluntary transaction between a buyer and seller, neither of whom is under any obligation to buy or sell.

The customary test of fair market value in real estate transactions is the price that a buyer is willing, but is not under any duty, to pay for a particular property to an owner who is willing, but not obligated, to sell.

Various factors can have an effect on the fair market value of real estate, including the uses to which the property has been adapted and the demand for similar property.

Fair market value can also be referred to as fair cash value or fair value.

fair market value

n. the amount for which property would sell on the open market if put up for sale. This is distinguished from "replacement value," which is the cost of duplicating the property. Real estate appraisers will use "comparable" sales of similar property in the area to determine market value, adding or deducting amounts based on differences in quality and size of the property. (See: market value, appraiser)

References in periodicals archive ?
Users will have efficient and timely access to FMV compensation data that is applied consistently across their financial relationships with healthcare professionals.
Father's tax basis is $90,000, and the properly has a FMV of $30,000.
Evidently, B's holding period begins when she actually or constructively receives the property because the distribution is treated as if the property were sold to the shareholder at its FMV on that date.
In fiscal year 2010, the 3d MI Center intends to implement an additional, tack-on week of FMV intelligence exploitation training to the original course, concentrating on enhancing the analysts' mission planning and intelligence production skills prior to their deployments.
This distortion makes the FMV method more attractive to taxpayers that acquire overseas assets.
FMV provides long-term and low-cost funds to its target sectors by lending through FIs.
Thus, the initial issuance of the options does not create a second class of stock, because the option has a strike price of at least 90% of the stock's FMV on that date.
Under the proprietary view, 75% of the subsidiary's NBV, FMV increment, and goodwill is allocated to the parent.
New Law: The new law generally recovers the tax benefit for charitable donations of tangible personal property for which an FMV deduction is claimed and which is not used for exempt purposes.
To illustrate, let's assume that you own a property with an OPP of $750,000 and an FMV of $1 million which is encumbered by a $1,35 million recourse mortgage held by the bank.
FMV must be distinguished from other types of value such as insurable value, investment value, property tax value and liquidation value.
The precision that companies must have when calculating FMV requires an intricate combination of physician qualifications and benchmarking data.