Glossary Index / Fair Market Value (FMV)

Fair Market Value (FMV)

The price, expressed in terms of cash equivalents, at which property would change hands between a buyer and seller acting at arm’s length in an open and unrestricted market. It assumes neither is under compulsion to buy or sell and both have reasonable knowledge of the
relevant facts. (In Canada, the term “price” should be replaced with the term “the highest price”.)