What Is Fair Market Value?

Fair market value (FMV) is the price in terms of cash equivalents that property would be sold for between a willing and able buyer and seller. The transaction must be considered arm’s length, meaning that it was (i) not between related parties for a low ball amount and (ii) not a forceful transaction. Both parties must have entered into a reasonable transaction.

This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.

About QSBS Expert

QSBS Expert was founded by a group of entrepreneurs, investors, accountants and lawyers who came together when trying to navigate a QSBS situation of their own. We quickly realized that the regulations left a lot of open questions and the publicly available information was confusing to sift through…so we thought that others may also benefit from having a “go to” resource for all things QSBS.