Definitions for letter F (Business)

Fair market value (FMV)

Generally, the highest dollar value that you can get for your property in an open and unrestricted market between an informed and willing buyer and an informed and willing seller who are dealing at arm's length with each other. See arm's length transaction.

Fiscal period

This is generally the twelve-month period over which a business or profession reports its income-earning activities. The fiscal period may or may not coincide with the calendar year. The business usually establishes its fiscal period when it files its first income tax return. See taxation year.