Click here to download the Fair Market Valuation Form.

American IRA-a National Provider of Self-Directed IRAs since 2004, announces that Fair Market Valuations are due by March 15, 2014.

With traditional stocks, fair market valuations are not necessary because the market evaluations are done on a daily basis and publicly reported. In contrast, non-traditional assets held within a Self-Directed IRA have values that can change depending on many factors. Since the value of these assets fluctuate, a yearly outside evaluation is required by the IRS.

A QUALIFIED, INDEPENDENT THIRD PARTY should perform the valuation and then complete both sections of the Fair Market Valuation Form, including their signature.  When providing an asset’s current value, please provide all supporting documentation to substantiate the value.  Please be advised that this valuation will be used for reporting purposes to the IRS.

It is as easy as counting to 4 – clients need to:

1. Enter their account information per self-directed investment they maintain with American IRA, LLC. (Example-2 Assets requires 2 separate valuations)

2.   Enter the current fair market value of their investment identified by this form. A QUALIFIED, INDEPENDENT THIRD PARTY should complete the valuation or appraisal and individuals should include supporting documentation with regards to this valuation.

3.  List the contact information of the qualified, independent third party providing the valuation of their self-directed investment. The qualified, Independent third party may be:

• Managing Partners
• Certified Appraisers
• Certified Commercial Realtors
• Independent Valuation Company
• Knowledgeable Party

4.  Follow these requirements:

A.    Real Estate: Broker’s opinion of value or appraisal. Tax values may not be used.
B.    LLC: Valuation needs to be completed by the manager of the LLC.
C.    Promissory Note: May be valued at the current principle balance.
D.    Gold, Charles Schwab Accounts, and Fidelity Accounts: May be valued at market value.

Click here to download the Fair Market Valuation Form.

If you have any questions about this or about Self-Directed IRAs, please contact the knowledgeable American IRA staff.