fair market value


Definition of fair market value

: a price at which buyers and sellers with a reasonable knowledge of pertinent facts and not acting under any compulsion are willing to do business

Examples of fair market value in a Sentence

Recent Examples on the Web Tuths says that the gains and losses on an NFT, while not explicitly laid out by the IRS, should be estimated by the fair market value of what was paid in crypto. Kelli María Korducki, The Atlantic, 12 Apr. 2022 At most of those auctions, homes were sold at far below fair market value. ProPublica, 7 Apr. 2022 However, the land’s fair market value was set at $34 million because the city is obligated to replace 1,060 parking spaces, per the terms of the lease with the Padres. Jennifer Van Grove, San Diego Union-Tribune, 19 Apr. 2022 The possibility that the deal could be derailed has reopened debate about whether the city got fair market value for the 150-acre property without soliciting bids. Bill Shaikin, Los Angeles Times, 25 Jan. 2022 As one Forbes contributor explained, the current rules allow for a step up in basis upon death, meaning a property that has appreciated steps up to the fair market value at the time of the owner's death. Ellie Perlman, Forbes, 29 Dec. 2021 April 15, 2016 - Judge Matsch orders the government to destroy the firearms belonging to Nichols, and that the fair market value of $6,922 be applied to his court ordered restitution of $14.5 million. CNN, 20 Mar. 2022 Over the past year, the average homeowner in California—a state with a $77,358 median household income—have seen their home equity (the home's fair market value minus the mortgage balance) soar $118,700. Fortune, 23 Dec. 2021 Such impairments cover tangible assets, like factories and land, and intangible assets, like brands and goodwill, which is created when one company buys another for a price higher than the fair market value of its assets. Mark Maurer, WSJ, 3 Mar. 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'fair market value.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of fair market value

1891, in the meaning defined above

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Time Traveler

The first known use of fair market value was in 1891

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Last Updated

20 May 2022

Cite this Entry

“Fair market value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/fair%20market%20value. Accessed 21 May. 2022.

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More Definitions for fair market value

fair market value


Legal Definition of fair market value

: a price at which buyers and sellers both having reasonable knowledge of the property and being under no compulsion are willing to do business

More from Merriam-Webster on fair market value

Thesaurus: All synonyms and antonyms for fair market value

Britannica.com: Encyclopedia article about fair market value


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