End of Year SD IRA Guidelines with Ingrid Chavez

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End of Year SD IRA Guidelines with Ingrid Chavez

33:31 · 2019

Episode 392

Scott: We have the amazing Ingrid from Quest Trust company. She’s joining us and we’re excited to have you here, Ingrid. What’s going on?

Ingrid: Not much. Just planning some end of the year. There are some important deadlines that come at the end of the year so I’m preparing for that and a lot of clients too. A lot of important deadlines and updates that we have to provide for you.

Scott: I imagine so because there’s always the end of the year account evaluation forms and the asset evaluation forms everybody submits. That’s the first one.

Ingrid: You have the end of the year, December 31st and then April 15. The tax filing deadline is the busiest times and there are certain forms whenever you have an asset with your retirement account. If it’s a real estate note asset and a private entity, you will have to submit the fair market value of that asset. Tell us what that asset is worth and what the value of that asset is. That has to be submitted by the end of the year to the custodian as well so the custodian can report that information over to the IRS. That’s one of the things that is pretty important. A lot of people don’t think it’s that important to submit them with the fair market value. They don’t understand why we need it. It’s a requirement for the IRS for us to be able to determine that value of the asset.

Scott: You can download the forms directly from the website. It’s a pretty easy thing. At the last week of the year, I’m always in the office working on those. I’ve got my staff ready to rock and roll and teaching them a little bit of it because it’s pretty simple. It’s a one-page form. The most challenging if you’re a note investor would be if you’ve got a nonperforming note in your portfolio. You need a third party to evaluate that because it’s not worth the full value of the loan or the UPB but it’s worth something by figuring out what it is. That’s still not too difficult to have a third party put that together. It’s easy. They email it into you and then you submit the IRS.

Ingrid: We launched the fair market values directly through the client portal so you no longer need to send the form. You can just go to the client portal. It’s so much easier. You’re going to love this. You log into the client portal, you click on the investments tab and you’ll be able to see all the investments for the account, updated FMB and where you’ll select the different market value. You’re even able to attach any supporting documentation like tax assessment or anything like that directly through the portal.

Scott: Is that the first announcement here on the Note Closers Show? A new tool on the portal. Is that for just the account holder? If I’m the investor or I have the deal, am I able to log in and submit that on behalf of our clients or our partners or not?

Ingrid: That will be for the account holder unless you have a limited power of attorney or a third party for their account then you may be able to do that. Our assistance team has been working on it hard. It wasn’t supposed to be released but they completed it. We’re going to be sending some announcements for that as well.

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