Fair market value substitution governs capital gains when transfer consideration cannot be ascertained or determined. Capital gains are computed by deeming the fair market value of a capital asset on the date of transfer to be the full value of consideration where the consideration received or accruing from the transfer is not ascertainable or cannot be determined. The provision applies only to a transfer of a capital asset and substitutes fair market value for indeterminate actual consideration in capital gains computation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Fair market value substitution governs capital gains when transfer consideration cannot be ascertained or determined.
Capital gains are computed by deeming the fair market value of a capital asset on the date of transfer to be the full value of consideration where the consideration received or accruing from the transfer is not ascertainable or cannot be determined. The provision applies only to a transfer of a capital asset and substitutes fair market value for indeterminate actual consideration in capital gains computation.
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