IRS-qualified fair market valuations for Roth IRA conversions and Form 8606 reporting. AppraiseItNow appraises business interests to support accurate, compliant conversion calculations.
Valuations by experienced appraisers across assets
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Joe Kattan
Anne Hay, ISA AM
Jason Dolph, CAGA
Ashley Innes, ISA AM
Tim Roy, ASA, CEA
Justin Ramirez, ASA, ABV, CFA
Marnie Erkelens, CAGA
Raymond Ghelardi, ASA
Aron Blue
About AppraiseItNow's IRA Conversion Appraisal Services
When converting a traditional IRA, SEP, or SIMPLE IRA to a Roth IRA, any non-cash assets held in the account must be valued at fair market value before the conversion can be completed. The IRS requires this valuation to determine the taxable income recognized in the conversion year, which must be reported on Form 8606. Assets such as membership interests in checkbook control LLCs, private placements, and thinly traded business entities all require an independent, qualified appraisal, book value or CPA statements do not meet the IRS standard.
AppraiseItNow delivers IRA conversion appraisals online and onsite across the United States, covering business interests such as LLCs, S-corps, partnerships, fractional interests, and privately held stock. Our appraisers are independent, qualified professionals with no relationship to the account holder, satisfying the IRS requirement that related parties cannot serve as valuators. Our mission is to deliver defensible, USPAP-compliant valuations with exceptional speed, professionalism, and client service.
What Does AppraiseItNow Appraise for IRA Conversion?
AppraiseItNow covers the key asset class that commonly requires valuation in IRA conversion transactions, including:
- Business Interests – LLCs, S-corps, partnerships, fractional interests, and privately held stock
Who Does AppraiseItNow Serve?
- IRA account holders converting traditional, SEP, or SIMPLE IRAs to Roth IRAs who hold non-cash business interests
- Self-directed IRA investors with checkbook control LLCs or privately held entities requiring independent valuation
- Tax attorneys and CPAs advising clients on Roth conversion strategy and IRS documentation compliance
- IRA custodians and trustees requiring third-party fair market value appraisals to process conversion requests
- Financial advisors coordinating Roth conversion planning for clients with complex, illiquid business holdings
5-Star Valuation Services, Loved by Hundreds
AppraiseItNow offers online appraisals and onsite appraisals in all 50 states including New York, California, Texas, and Florida.
What is an IRA conversion appraisal?
An IRA conversion appraisal is a fair market valuation of non-cash, hard-to-value assets held within a traditional IRA that are being converted to a Roth IRA. Because the IRS requires the converted amount to be reported as taxable income in the year of conversion, an independent appraisal establishes the correct fair market value for that reporting.
When is an IRA conversion appraisal required?
An appraisal is required whenever non-cash assets with no readily determinable market value are held in an IRA being converted to a Roth IRA. There is no specific dollar threshold, any hard-to-value asset, including membership interests in checkbook control LLCs, requires an independent valuation.
What types of assets need an IRA conversion appraisal?
AppraiseItNow appraises the following asset types for IRA conversion purposes:
- LLCs
- S-corps
- Partnerships
- Fractional interests
- Privately held stock
Who qualifies as an appraiser for IRA conversion purposes?
The IRS requires valuations to be performed by a qualified, independent expert with demonstrated expertise in the specific asset type being appraised. Related parties, including the account holder, their spouse, or any associated entity, cannot perform the appraisal, and CPA book values do not satisfy the fair market value standard.
Are AppraiseItNow's IRA conversion appraisals USPAP-compliant?
Yes. All AppraiseItNow appraisals are prepared in conformance with USPAP, which supports the independence, methodology, and documentation standards the IRS expects for qualified appraisals.
What information do you need to get started?
To begin an IRA conversion appraisal, it helps to have the following ready:
- The effective valuation date (typically the conversion date)
- Organizational documents for the entity (operating agreement, bylaws, or partnership agreement)
- Recent financial statements or tax returns
- Ownership structure and any existing buy-sell agreements
- For private entities, a signed and notarized statement from the entity's manager confirming ownership details
How long does an IRA conversion appraisal take?
Most IRA conversion appraisals are completed in 2 to 4 weeks. Rush service with a 7 to 10 day turnaround is available upon request.
How much does an IRA conversion appraisal cost?
Fees vary depending on the asset type, ownership complexity, and scope of the engagement, visit our pricing page for a full breakdown.
Can you appraise assets located anywhere in the US?
Yes. AppraiseItNow works with clients across all 50 states and can appraise business interests and other qualifying assets regardless of where they are located.
Will my appraisal be accepted by the IRS?
AppraiseItNow prepares appraisals to meet qualified appraisal standards, including a defined valuation date, appropriate methodology, documented appraiser credentials, and a non-contingent fee declaration. No firm can guarantee acceptance in every case, but following these standards significantly reduces the risk of IRS challenge or penalty for valuation misstatement.
Do you buy, sell, or broker assets?
No. AppraiseItNow provides independent appraisals only. We have no financial interest in any asset we appraise, which is essential to maintaining the independence the IRS requires.
What IRS form is used to report an IRA conversion?
Conversions are reported using Form 8606, which requires the fair market value of converted assets, any gain or loss calculations, and a personal certification under penalty of perjury. A copy of the appraisal and supporting documentation should also be provided to your IRA custodian.
What are the most common mistakes when converting non-cash IRA assets?
The most frequent errors involve independence and qualification, using a related party, relying on a CPA's book value, or assuming a custodian can provide tax guidance. Conversions are also irrevocable and trigger income tax in the conversion year, so having an accurate, defensible valuation before the transaction is completed is critical.
What documentation is required beyond the appraisal itself?
For private business interests, the IRS and custodians typically require a signed, notarized statement from the entity's manager confirming ownership percentages and any restrictions on transfer. The appraisal itself must reflect fair market value as of the conversion date and be prepared by a qualified, independent appraiser.
Does the five-year rule affect IRA conversion planning?
Yes. Converted funds are subject to a five-year holding period before they can be withdrawn penalty-free for account holders under age 59½. While this is a tax planning consideration rather than an appraisal issue, it underscores why an accurate valuation at the time of conversion matters, the taxable amount reported cannot be revised after the fact.
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