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A fair market valuation (FMV) is used to assign or change the value of an asset. Valuation of the assets in your self-directed account must be provided to The Entrust Group on a yearly basis to ensure proper tax reporting.

A Fair Market Valuation is also required when:

  • Taking an in-kind asset distribution 
  • Converting an asset
  • Recharacterizing of an asset

Note: An appraisal is required to submit along with the Fair Market Valuation Form for real estate asset distribution, conversion, and recharacterization to determine the fair market value.

The Entrust Group, Inc. is required to:

  • Provide the Fair Market Value (FMV) of your Account as of Dec. 31st of each year to the Internal Revenue Service (IRS).
  • Provide the Account Owner a form 5498 with the same FMV information for the account.

To properly report the FMV of an asset, a qualified, independent third party should perform the valuation and then complete the Fair Market Valuation Form. A qualified, independent third party may be:

  • Certified Appraiser
  • A Licensed Real Estate Professional (such as Broker/Realtor)
  • Knowledgeable Party (such as CPA, Attorney, Financial Planner, etc. who is strictly at “arms length” to both you and the investment)

Fair Market Valuation Guidelines:

  • The Fair Market Valuation Form MUST be signed and dated by BOTH you and the third party valuator if an appraisal is not required. If the appraisal is required, the appraiser does not have to sign the FMV form. The appraisal report is sufficient. 
  • The FMV form must be sent back with supporting documents. 
  • If you hold more than one asset within your self-directed account please complete one form for each asset.

For more information and Frequently Asked Questions, download our free guide to FMV's.

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Fair Market Value FAQs

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Frequently Asked Questions.

Fair Market Valuation