Establishing fair market value for tax purposes

[Andrew S.]

I'm considering selling a property to a family member below current market value. For the purpose of determining potential capital gains/losses, I need to establish a fair market value that will hold up to IRS standards. So, what ARE IRS standards for a case like this? Can I just reasonably comp the property myself? I purchased the property 5 years ago - can I simply use the purchase price plus some reasonable inflation adjustment? I assume that the iron-clad way is to pay for a professional assessment, but I'm trying to avoid that cost and hassle, if possible. Does anyone here have experience with what might be considered a "reasonable" attempt at determining FMV?