MANAGING YOUR ACCOUNT

Zero-Value Assets and Distributions

Below is everything you need to know about Zero-Value Assets and Distributions. Requests for zero-value distributions can be easily submitted via the NDTCO Client Portal at any time.

person doing their annual fair market valuation

ZERO-VALUE ASSETS

What to Know

Unfortunately, not all investments always go as planned. In the specific case that you have to declare an investment as worthless, you will need specific documentation to complete a zero-value distribution.  

When an investment is determined to be of zero value, you need to have it removed from your self-directed account. You can easily submit a request to do so via the NDTCO Client Portal:

  • Log into the NDTCO Client Portal.
  • On the Overview page, find the asset that needs to be declared as zero value. Click “Take Action” to the right of that asset and click on “Valuate.”
  • On the “Fair Market Valuation Page,” check the box that states “I would like to declare this asset is worth $0 and have it removed from my account.”
  • Provide any additional information, upload supporting documentation as necessary, check the box to agree to “Terms and Conditions,” and click “Submit.”

Some investments, such as precious metals and real estate, are not eligible for zero-value distributions since they are incapable of losing their value.

Private Equity and Debt/Promissory Notes Investments are examples or investments that can be Zero-Value

Acceptable Documents
 
  •  A letter from a CPA or Attorney
  • A letter from a managing member on company letterhead
  • Any official court documents, including bankruptcy or criminal filings

Not Acceptable Documents

  •  Schedule K-1
  • Documents from the Secretary of State website
  • Newspaper or website clippings
  • Non-authorized signers (i.e., the janitor or landlord)
  • Electronic correspondences with the company (e-mail)
  • Personal research
  • Voicemails and text messages

Please note that we cannot accept emails as proof of value.

Acceptable Documents
  • Death certificate if the borrower is deceased
  • A signed letter from the borrower explaining why he/she are unable to pay
  • Any official court documents, including bankruptcy or criminal filings or receivership documents
  • Secretary of State information showing the borrowing entity is dissolved

Please note that we cannot accept emails as proof of value.

NDTCO will distribute the asset to you valued at $1. The value is low enough that it will not be reported to the IRS.

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Foundations of a Self Directed IRA

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  • Thu20 Feb
    12:00PMMST
    Real Estate 101: Investing in Real Estate with a Self-Directed IRA
    ONLINEPeople are often surprised to hear they can use their retirement funds to invest in real estate, but investing in real estate with a self-directed IRA is a great way to diversify your portfolio. In this webinar, you will learn what types of real estate assets are available, how qualified retirement plans can participate in real estate, and the rules associated with investing in real estate. Join NDTCO’s Chris Tanner as he shares his vast knowledge and provides tools that could help you determine how you could navigate the real estate market and use your tax-advantaged funds to invest in real estate.REGISTER