Professional Assessment Services
Estate planning, tax reporting and fair distribution (divorce and distribution of property)
The distribution of assets in the event of a bankruptcy or dissolution of a business requires a valuation of fair market value.
In the case of an estate, a fair market value assessment is used to determine estate administration taxes and assist in the division of estate.
In situations involving the dissolution of a business or bankruptcy and where the sale of assets is required, a fair market value assessment may be required to determine income tax. Income tax is levied on the profit obtained on the sale of an asset at a higher price than that of the previous acquisition.
According to the Department of Canadian Heritage, the document “Certification of Cultural Property for Income Tax Purposes by the Canadian Cultural Property Export Review Board” discloses the generally accepted meaning, approved by the Canada Revenue Agency, for the Fair Market Value is: “The highest price, expressed in cash, that a good would yield on the open market, in a transaction between a willing seller and buyer who would be independent of each other and who would act with full knowledge of the facts. »