Fair Market Values

Acceptable Supporting Documentation:
a. Full Appraisal
b. Broker’s Opinion
c. Tax Appraisal from the County’s Website

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

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.

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 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.