Fair Market Values

Fair Market Values: The year-end-value of the assets held in your self-directed IRA account is more difficult to determine than those held in a traditional IRA account. This video series was designed to help you ascertain the proper supporting documentation to value each asset held in your account here at Quest. Fair Market Value Form

For assets purchased after November 1st, 2020, you do not need to submit a Fair Market Valuation for 2020.

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Fair Market Values: Real Estate
Acceptable Supporting Documentation:
a. Full Appraisal
b. Broker’s Opinion
c. Tax Appraisal from the County’s Website

Fair Market Value : Notes
Acceptable Supporting Documentation:

a. Interest Only Notes: Copy of the original note
b. Amortized Notes: Amortization schedule
c. Discounted Notes: letter from qualified note professional or amortization schedule

Fair Market Value : Private Entities
Acceptable Supporting Documentation:

a. Private Placement/An Entity Holding another Asset: What is the underlying investment? (E.g. real estate, notes, or equipment). Supporting documentation must value the underlying asset of the entity. Refer to video over real estate or notes as applicable.

b. Private Stocks: (E.g. small bank stock) Letter from managing member of company letter head attesting to the value of the stock.

Fair Market Value : Miscellaneous
Acceptable Supporting Documentation:

a. Debt Leverage Property:
i. Value of the property – loan balance = FMV
ii. Review Real Estate FMD Video and
iii. Provide documentation for the loan that indicates the loan balance

b. Personal Property: (e.g. mobile home or equipment)
i. Third party valuation from a qualified professional, can be a letter or comparable sales

c. Tax Liens:
i. Value of tax lien and include interest (also include any unpaid amounts)

Fair Market Value : FAQs
Fair Market Valuations (FMVs) are important for a number of reasons including calculating accurate tax implications and determining any Required Minimum Distributions (RMDs). This video lays out all of your tough questions about Fair Market Valuations and how to submit one to ensure you are covered for each tax year.