Editing Fair market value (section)

{{Short description|Legal concept}}
{{Refimprove|date=May 2009}}
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 in the United States|bankruptcy]] laws, in many state laws, and by several regulatory bodies.<ref>to wit, Internal Revenue Service Notice 2005-43</ref> 

In litigation in many jurisdictions in 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.<ref>{{cite news|last=Jenkins Jr.|first=W. Scott|title=The Arizona Court of Appeals Holds the Right to a Fair Market Value Hearing Cannot be Waived in a Deficiency Action|url=http://www.natlawreview.com/article/arizona-court-appeals-holds-right-to-fair-market-value-hearing-cannot-be-waived-defi|access-date=5 May 2014|newspaper=The National Law Review|date=20 April 2014|author2=Alissa A. Brice|author3=Ryley Carlock & Applewhite, PC}}</ref>

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 the type of property or asset involved.<ref>{{Cite web |title=Fair Market Value (FMV): Definition and How to Calculate It |url=https://www.investopedia.com/terms/f/fairmarketvalue.asp |access-date=2023-05-25 |website=Investopedia |language=en}}</ref>

Fair market value is subjective and can fluctuate based on market conditions, supply and demand, location, and other factors.{{cn|date=October 2023}}