The IRS requires that all custodians obtain and report the fair market valuation (FMV), or good faith estimate, of an IRA annually on Form 5498 and/or prior to a taxable event such as a distribution or Roth conversion. Alternative asset values are not available through public trading exchanges. Therefore, self-directed IRA owners must generally work with their investment provider or contract with a qualified, independent third party to complete this valuation.
Directly Owned Real Estate FMV Annual Request Timeline
Annual updates are due to STRATA by April 30, in order to meet the IRS deadline of May 31.
If there is an exception or special circumstance that prevents you from meeting the April 30th deadline, the accountholder must notify STRATA at their earliest convenience at InvestmentUpdates@StrataTrust.com and include the expected date for your FMV. Service fees may apply.
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.
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- 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.
Annual FMV Request Timeline Overview
2/1/2024 — First Request: STRATA will notify accountholders to provide us with an updated FMV as of December 31, 2023 (or within 12 months of the last FMV submitted).
3/1/2024 — Reminder: STRATA will mail a reminder to accountholders if the FMV has not already been provided (and we have not received prior notice that the FMV will not be available until after April 30th).
4/1/2024 — Final Reminder: If the FMV has not yet been provided, STRATA will mail a final reminder to accountholders that FMVs are due by April 30. This letter will also include potential actions/fees that may occur if the FMV is not provided to STRATA.
4/30/2024 — FMV Deadline: All FMVs must be reported to STRATA in order to meet the IRS deadline for filing Form 5498. FMVs reported after this date may require a corrected Form 5498 to be filed; if so, the $100 Corrected 5498 Fee will apply.
7/1/2024 — Late Fee: A Late FMV Fee of $50 will be assessed if the FMV is not received prior to June 30, 2024. STRATA will also attempt to contact accountholders by email or phone to follow up on the late FMV. The Corrected 5498 Fee may apply.
9/2/2024 — Custodial Resignation: If the FMV has not been provided by this date, STRATA must resign as custodian for the account and distribute the asset in-kind to you. The Late FMV fee and Account Closure Fee will apply. If a corrected 5498 is filed, the fee will apply as well. The distribution of the asset will be considered a taxable event, and penalties and additional taxes may be incurred.
Refer to STRATA's IRA Fee Schedule for a full list of Service Fees.
Ready to Get Started?
NEW for 2024: STRATA's Fair Market Valuation - Real Estate form has been updated to include fast, electronic form submission through ServiceNOW. Accountholders can easily complete, sign, upload supporting documentation, and securely electronically transmit your FMV update directly to STRATA. Click the form link above and a pop-up will appear—enter your email and get started today!