FMV Frequently Asked Question
Q. What is a Fair Market Value?
A. The Fair Market Value is the price the asset would sell for between a willing buyer and a willing seller.
Q. Will this information be used to compute income taxes that may be due from my IRA?
A. No. The valuation is informational only.
Q. When I had an IRA at a brokerage firm, they never asked me for the value of my assets.
A. Brokerage firms already have valuation information. Securities such as public stock have a close date and a readily available market price. The IRS requires IRAs to have updated values each year.
Q. Do I need to hire an appraiser?
A. Generally, no. The update is for a non-taxable event and ensures proper reporting for the IRA on Form 5498. Just provide the Fair Market Value of the assets based on the above definition, and IRA Club will handle the rest.
Q. My IRA just bought the asset within the last 90 Days. Do I need to complete this valuation?
A. In this case, you may simply enter the price paid. If you do not have assets other than the most recent purchase, you may skip filling out the valuation form this year.
Q. I get an extension on my income tax filing. What is my valuation due date?
A. IRA Accounts operate on a calendar from January 1-December 31. The Fair Market Valuation Form is due regardless of when you file your income tax, and IRA Club’s deadline is January 27, 2023.
Q. How do I complete the form if I have an IRA-LLC?
A. If your IRA only has an IRA-LLC, you can enter the LLC’s name as the asset name. The value of the LLC is the total value of all investments that the LLC owns and any cash in the LLC’s bank account. Please provide a copy of the statement for the LLC’s bank account to confirm the balance.