Determining Fair Market Value

November 4, 2019

The method used to determine FMV may vary depending on the reason you need to use it. The IRS has tax rules governing the fair market value of charitable donations and fringe benefits, for instance. If you’re buying a building, you’re probably more concerned with not paying more than FMV. First, it’s important to understand the definition of fair market value and why it’s often a subjective number.