fair market value

Fair market value (FMV) refers to the price at which an asset or property would be exchanged between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts and neither being under any compulsion to buy or sell. It represents an unbiased estimate of the asset’s worth in an open and unrestricted market.

Here are some sources that provide further information on fair market value:

1. Investopedia – Fair Market Value (FMV): Investopedia offers a comprehensive definition of fair market value, including its significance in various contexts such as taxation, valuation, and transactions.
2. IRS Publication 561 – Determining the Value of Donated Property: The Internal Revenue Service (IRS) publication provides guidance on determining the fair market value of donated property for tax purposes.
3. Legal Information Institute – Fair Market Value: The Legal Information Institute (LII) at Cornell Law School provides a concise definition of fair market value and its relevance in legal contexts.
4. American Society of Appraisers – Fair Market Value: The American Society of Appraisers (ASA) explains fair market value, its application in appraisal practice, and the factors considered when determining it.
5. Financial Accounting Standards Board (FASB) – Fair Value Measurement: The FASB provides information on fair value measurement, which is closely related to fair market value, and its importance in financial reporting.

These sources should provide you with a solid understanding of fair market value and its significance in various domains. It’s important to note that specific regulations and guidelines may vary based on jurisdiction and the context in which fair market value is being applied. Consulting with professionals, such as appraisers or tax advisors, can provide more precise guidance in specific situations.