After the initial purchase, you will be required to provide an annual update of fair market value (FMV). In addition, a new FMV will be required for any taxable event, such as an in-kind distribution of the property or Roth IRA conversions. For annual updates, please refer to STRATA's Directly Owned Real Estate FMV Annual Request Timeline.
FMV Tips
- Each asset requires a separate Real Estate Valuation form.
- For annual updates, supporting documentation is required.
- The supporting documentation must be signed and completed by a certified real estate appraiser or a licensed real estate professional (“Valuation Agent”) of the accountholder’s choice (if a Valuation Agent is required).
- A Valuation Agent must be an independent, third-party professional who is certified or licensed and not considered a disqualified person as defined in Internal Revenue Code 4975.
- Certified real estate appraisals, broker price opinions (BPOs), or a comparative market analysis (CMA) that include the Valuation Agent's signature on the documents submitted will be accepted.
- NEW for 2024 — Supporting documentation from an approved third-party website (Zillow, Realtor.com, or Redfin) will be accepted; however, county tax appraisals are not accepted. A Valuation Agent is not needed.
- If your FMV update changes the asset value by 50% or greater, a third-party website valuation cannot be submitted. You will need to provide a signed and certified real estate appraisal, BPO, or CMA-acceptable supporting documentation.
- If the valuation is received after the deadline, the updated value will reflect the form submission date and any corrected tax forms may incur a correction fee. Please refer to STRATA’s IRA Fee Schedule.
- If you incur any fees from obtaining a valuation, they must be paid from your STRATA IRA. Submit STRATA's Expense Payment Authorization form.
In addition, a new FMV will be required for any taxable event, such as an in-kind distribution of the property or Roth IRA conversions.