What is Fair Market Valuation (FMV)?

Fair Market Valuation (FMV) is part of the Internal Revenue Service (IRS) reporting requirements that provide the value of an asset annually.

Your submission of 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 (“Entrust”) on a yearly basis to ensure accurate and proper tax reporting to the Internal Revenue Service (IRS).


A fair market valuation is also required when:

  • Taking an in-kind distribution
  • Converting an asset held in a tax-deferred account to a post-tax account
  • Converting an entire tax-deferred account to a post-tax account
  • Demonstrating an asset no longer has value

 

Precious metals and publicly traded assets (stocks, bonds, etc.) DO NOT require your submission of a fair market valuation because these investment values are determined by the market. Entrust updates the value of most precious metals and publicly traded assets daily. Entrust will report the value of precious metals and publicly traded assets, along with any other assets held in your account, to the IRS via Form 5498 on an annual basis.

 

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What Does Entrust Do?

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IRS Reporting

Entrust will provide the fair market value (FMV) of your account as of December 31 of each year to the IRS.

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Form 5498

Entrust will provide the account owner with the IRS Form 5498 with the FMV information for the account.