The fair market value of property is the price at which it would change hands between a willing and informed buyer and seller. The term is used throughout the Internal Revenue Code , as well as in bankruptcy laws, in many state laws, and by several regulatory bodies.
12-563: [REDACTED] Look up FMV in Wiktionary, the free dictionary. FMV may refer to: Science and technology [ edit ] Full-motion video , a video game narration technique that relies upon pre-recorded video files Fig mosaic virus ( Fig mosaic emaravirus ), a segmented, negative sense, single-stranded RNA virus Function multi-versioning , an optimization technique in computing Other uses [ edit ] FMV (catamaran) ,
24-691: A vessel that was sailed across the Atlantic Ocean in 1981 Swedish Defence Materiel Administration (Swedish: Försvarets materielverk ), Sweden Faculty of International Relations, University of Economics in Bratislava , faculty of the University of Economics in Bratislava Fair market value , an estimate of the market value of a property Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with
36-470: A vessel that was sailed across the Atlantic Ocean in 1981 Swedish Defence Materiel Administration (Swedish: Försvarets materielverk ), Sweden Faculty of International Relations, University of Economics in Bratislava , faculty of the University of Economics in Bratislava Fair market value , an estimate of the market value of a property Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with
48-597: Is not explicitly defined in the Income Tax Act. That said, Mr. Justice Cattanach in Henderson Estate, Bank of New York v. M.N.R. , (1973) C.T.C. 636 at p. 644 articulates the concept as follows: The statute does not define the expression "fair market value", but the expression has been defined in many different ways depending generally on the subject matter which the person seeking to define it had in mind. I do not think it necessary to attempt an exact definition of
60-517: The United States the fair market value is determined at a hearing. In certain jurisdictions, the courts are required to hold fair market hearings, even if the borrowers or the loans guarantors waived their rights to such a hearing in the loan documents. FMV is often used for taxation purposes, determining the value of charitable donations, estate planning, and other financial transactions. The specific methods used to determine FMV may vary depending on
72-530: The expression as used in the statute other than to say that the words must be construed in accordance with the common understanding of them. That common understanding I take to mean the highest price an asset might reasonably be expected to bring if sold by the owner in the normal method applicable to the asset in question in the ordinary course of business in a market not exposed to any undue stresses and composed of willing buyers and sellers dealing at arm's length and under no compulsion to buy or sell. I would add that
84-417: The foregoing understanding as I have expressed it in a general way includes what I conceive to be the essential element which is an open and unrestricted market in which the price is hammered out between willing and informed buyers and sellers on the anvil of supply and demand. These definitions are equally applicable to "fair market value" and "market value" and it is doubtful if the word "fair" adds anything to
96-494: The 💕 [REDACTED] Look up FMV in Wiktionary, the free dictionary. FMV may refer to: Science and technology [ edit ] Full-motion video , a video game narration technique that relies upon pre-recorded video files Fig mosaic virus ( Fig mosaic emaravirus ), a segmented, negative sense, single-stranded RNA virus Function multi-versioning , an optimization technique in computing Other uses [ edit ] FMV (catamaran) ,
108-490: The title FMV . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=FMV&oldid=1203869647 " Category : Disambiguation pages Hidden categories: Articles containing Swedish-language text Short description is different from Wikidata All article disambiguation pages All disambiguation pages FMV From Misplaced Pages,
120-526: The title FMV . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=FMV&oldid=1203869647 " Category : Disambiguation pages Hidden categories: Articles containing Swedish-language text Short description is different from Wikidata All article disambiguation pages All disambiguation pages Fair market value In litigation in many jurisdictions in
132-658: The type of property or asset involved. Fair market value is subjective and can fluctuate based on market conditions, supply and demand, location, and other factors. The fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. United States v. Cartwright , 411 U. S. 546, 93 S. Ct. 1713, 1716-17, 36 L. Ed. 2d 528, 73-1 U.S. Tax Cas. ( CCH ) ¶ 12,926 (1973) (quoting from U.S. Treasury regulations relating to Federal estate taxes, at 26 C.F.R. sec. 20.2031-1(b)). Fair market value
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#1732845042119144-511: The words "market value." In concert with this decision, the Canada Revenue Agency (CRA) lists the following working definition in its on-line dictionary: Fair market value generally means the highest price, expressed in dollars, that a property would bring in an open and unrestricted market between a willing buyer and a willing seller who are both knowledgeable, informed, and prudent, and who are acting independently of each other. As
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