FMV of Real Estate in a Solo 401K

[Bill A.]

I understand the IRS is looking more intently at FMV of real estate assets held in a Solo 401K especially if an RMD is required. Within my Solo 401K I plan to invest in a LLC that owns/operates an apartment and I am of the age where RMD is required. The operator of the LLC uses cost basis/distributions to arrive at FMV, yet I read elsewhere that is not sufficient, that full third party appraisal is required annually. What are the IRS rules/regs regarding establishing FMV? Am I at a higher risk of an audit using the FMV that is based on cost basis/distributions?

Bill A.

Contact

[Mark Nolan]

What percentage of the LLC does your solo 401k own?

Mark Nolan

Compliance Officer

Contact

1-800-489-7571 www.mysolo401k.net