VALUATIONS

The amount it would cost to replace an item with one of similar and like quality purchased in the most appropriate marketplace within a limited amount of time. This is a value that is applied to insurance policies, and is the highest valuation figure for personal property.

According to the IRS, Fair Market Value is the price that property would sell for on the open market between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. This is the value that is accepted by the IRS for estate tax liabilities, as well as charitable gift donation appraisals.

The value realized, net of expenses, by a willing seller disposing of property in a competitive and open market to a willing buyer, both being reasonably knowledge-able of all relevant facts, and neither being under constraint to buy or sell. Marketable cash value is used in equitable distribution situations, when tangible property may be exchanged for cash or other financial products.