FMV = Book Value?

[Tax Advisors]

Many tax advisors use Book Value as a FMV for assets that are sold. Is this an acceptable practice? How do you determine selling price of asset that will be disposed?

[rgtaxservice]

Many tax advisors use Book Value as a FMV for assets that are sold. Is this an acceptable practice? How do you determine selling price of asset that will be disposed?

Not the same.

Book Value = Cost minus Accumulated Depreciation.
FVM is just that.

I use the selling price as the FVM since that's the price the market would, and did, pay for the item.

Using Book Value is not the way to go to determine the future selling price. Think of it this way.. You would not sell the building you bought 100K for 75K just because you've already claimed 25K of depreciation. The best way to determine a future selling price is to get an appraisal.

[taxxcpa]

Fmv

The selling price would be the price received whether it was FMV or some other amount.
The FMV might be a good means of deciding what to sell it for, but would not be the amount of the sale if the sales price was more or less.

The BEST way to determine the sales price, if you are the seller, is to charge all the traffic will bear.

[Tax Advisors]

Corporation is liquidated and shareholder assumes the asset. How would you determine selling price? FMV or Book Value?

[BHoffman]

Corporation is liquidated and shareholder assumes the asset. How would you determine selling price? FMV or Book Value?

There aren't many times when it's proper to use BV as a selling price upon disposition. A Sec 351 transfer is one and there might be others, but never upon liquidation.

Look in your TaxBook and see Chapter 18 for Corporate Liquidation info.