Fair Market Value

(redirected from FMV)
Also found in: Dictionary, Financial, Acronyms, Encyclopedia, Wikipedia.

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 ?
Thus, the insurance proceeds should not have been included in the computation of the company's FMV.
The Tax Court concluded that the IRAs' FMVs could not be discounted, because the IRAs were not the proper assets to value for estate tax purposes.
Users will have efficient and timely access to FMV compensation data that is applied consistently across their financial relationships with healthcare professionals.
OnStar FMV offers the key features and services that have made OnStar's "blue button" an icon, including Automatic Crash Response, Turn-by-Turn Navigation and Hands-Free Calling.
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.
In the preamble to the regulations, the Treasury Department and IRS announced an intent to issue a revenue procedure to provide temporary rules for granting taxpayers automatic consent to change from the FMV method to the alternative TBV method.
If an employee gives ISO stock before the holding period has expired, he or she must recognize compensation income for the excess of the stock's FMV over its exercise price.
Using the market approach to determine the FMV of XYZ's backlog, the following formula is applicable:
FMV bears one-third of the credit risk of the ultimate mortgage loans.
OnStar FMV is a rearview mirror that delivers the core features that have made OnStar the most trusted and popular in-vehicle safety, security and convenience service on the market today, with more than 6 million active subscribers.
1361, which states that generally call options, warrants, or similar instruments (collectively, "call options") are treated as a second class of stock if the call options are substantially certain to be exercised and have a strike price substantially below the FMV of the underlying stock on the date that the call options are issued or transferred by an eligible shareholder to a person who is not an eligible shareholder.