The Internal Revenue Service (“IRS”) requires that a fair market value be determined for all IRA assets, including those assets that are not publicly traded. The fair market value of all IRA assets must be reported to the IRS annually. These values are reported to the IRS on Form 5498. The IRS requires an IRA […]
All assets held in IRA accounts must be valued at fair market value on an annual basis. For traded securities like stocks and bonds held in IRA accounts, these valuations are relatively simple to obtain by the IRA Trustee or IRA Custodian. Many investors, usually through self-directed IRA accounts, hold alternative assets that are not […]
The Internal Revenue Service (“IRS”) is aware of IRA valuation abuses. Over the years the IRS has taken steps to address these abuses. In 2013, the IRS modified its Form 5498 to increase the reporting requirements for hard-to-value IRA assets. In addition, the IRS has always required that values of alternative assets be supported by […]
The Internal Revenue Service (“IRS”) requires that the annual valuations be completed by a qualified, independent, third-party IRA valuation expert or company. Qualified, independent, third-party valuation experts must be at arm’s-length from both you and the investment. Valuations provided by the General Partner or Manager of the alternative investment are not considered independent and do not […]
A qualified, independent, third-party IRA valuation expert should be hired to complete the valuation of the alternative assets in your IRA account. J&M Asset Management, Ltd has been providing valuations of alternative assets to individuals, custodians and trust companies for over 20 years. We have long-term contracts with many financial institutions, both large and small. Our […]
IRA Trustees and Custodians are required to report the values of IRA assets annually on IRS Form 5498. The IRS Form 5498 has a due date of May 31st. IRA Trustees and Custodians have different due dates for the valuation reports of the alternative assets held in their client’s IRA accounts. IRA account holders should […]
The most widely recognized and accepted standard of value is fair market value. Fair market value is the standard that applies to all federal and state tax matters. It is also the legal standard of value in many other valuation situations. Internal Revenue Service Revenue Ruling 59-60 defines fair market value as the cash price […]
The Internal Revenue Service (“IRS”) requires that the assets held in a traditional IRA be valued at the time of the IRA’s conversion into a Roth IRA. The amount of the conversion is generally considered taxable income in the year of the conversion. For alternative assets, a fair market value must be determined by a […]
