FMV calculation

[rhernand_455]

How is FMV calculated on any property? In other words, if I have some property that I own and then sell it; how do I calculate the FMV for calculating the cost basis? (My undertanding is that if I get a gift and then sell that gift then I would have to use the FMV of the property at the time in was given to me as the cost basis. Is that correct?) Is this a number that I can just make up? Do I have to get an appraiser to give an FMV?

 

[Snipes5]

That is incorrect.

If you have some property that was gifted to you, your basis is the donor's basis, plus any gift tax paid.

If you inherit property, the value is the FMV on the date of death. In those cases, the property is normally appraised or valued at that time.

No, FMV is not just a number you pluck out of thin air.

Snipes

 

[rhernand_455]

Thanks... What if the property is not realstate? I have a situation where my company went out of bussiness and they gave me some Network equipment (for free), which I then sold. How do I calculate the FMV for that? Are there appraisers that also can appraise such equipment?