fair market value

noun

: 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
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Under this scenario the Republicans repeal the estate tax but also repeal the rules that provide that assets held on death will still be subject to an income tax basis adjustment (step-up to fair market value) on death. Martin Shenkman, Forbes, 20 Feb. 2025 Last June, City took the Premier League to independent arbitration, claiming that the existing APT rules — which attempted to ensure that any deals agreed by clubs with sponsors represented fair market value (FMV) — were unfair and against competition law. Chris Waugh, The Athletic, 19 Feb. 2025 At the end of the third quarter, Tesla’s bitcoin holdings were recorded at a carrying value of $184 million, though their fair market value was significantly higher at $729 million. Mackenzie Sigalos,ari Levy, CNBC, 30 Jan. 2025 RMDs are determined by dividing the retirement account's prior year-end fair market value by a life expectancy factor published by the IRS. Gordon G. Chang, Newsweek, 11 Dec. 2024 See All Example Sentences for fair market value

Word History

First Known Use

1891, in the meaning defined above

Time Traveler
The first known use of fair market value was in 1891

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Cite this Entry

“Fair market value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/fair%20market%20value. Accessed 3 Mar. 2025.

Legal Definition

fair market value

noun
: 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

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