### Question
What is the definition of fair market value?


### Answer
The definition of **fair market value** is as follows in *42 U.S.C. § 1395nn*:

> the value in arms length transactions, consistent with the general market value, and, with respect to rentals or leases, the value of rental property for general commercial purposes (not taking into account its intended use) and, in the case of a lease of space, not adjusted to reflect the additional value the prospective lessee or lessor would attribute to the proximity or convenience to the lessor where the lessor is a potential source of patient referrals to the lessee

#### Citation:
  - *42 U.S.C. § 1395nn*
  - Heading: **CHAPTER 7-SOCIAL SECURITY > SUBCHAPTER XVIII-HEALTH INSURANCE FOR AGED AND DISABLED > Part D-Miscellaneous Provisions**

