FMV refers to the current re-sale market value (price) of the distributed assets at the time they are distributed to the partners; it isn't calculated in the software, it is accounted for. Per the instructions for Form 7217, the FMV of distributed partnership assets is figured at the partnership level; as you're doing this altogether, the IRS definition of Fair Market Value may be of help:
Fair market value (FMV).
FMV is the price at which the property would change hands between a buyer and a seller when both have reasonable knowledge of all the necessary facts and neither is being forced to buy or sell. If parties with adverse interests place a value on property in an arm’s-length transaction, that is strong evidence of FMV.
A formulation might be, "what would an appraiser say these assets were worth" on the date of distribution.
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