Fair market value deemed consideration: FMV used to compute capital gains when actual consideration is indeterminate.
Where actual consideration for transfer of a capital asset is not ascertainable, the fair market value (FMV) of the asset on the transfer date is to be deemed the full value of consideration for capital gains computation. Determination may use comparable sales, income, or cost approaches, but unique or illiquid assets and absence of standardized methods create practical valuation disputes. Taxpayers must substantiate FMV and authorities need valuation frameworks to ensure consistent application and prevent understatement of taxable gains.