News #3

Our office will be closed on Monday, October 14th. We will reopen on Tuesday, October 15th.

News #3

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.

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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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Education Center

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Foundations of a Self Directed IRA

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  • Tue22 Oct
    12:00PMMDT
    The Power of Tax-Free Investing: Leveraging your Roth IRA to Grow Your Retirement
    ONLINEThe IRS has given all retirement plan owners a powerful opportunity to grow and withdraw retirement income tax-free. Most people are familiar with these types of accounts but may not be familiar with how they could take advantage of them. Roth IRAs were first introduced in 1998, and recent tax law changes have drastically increased the ability to “Rothify” your retirement accounts. Many people assume “saving” tax now because they will be in a lower tax bracket later in life is the best way to go, or they believe they are “too old” to do Roth conversions. Neither of which may be true. Join us as we share some key concepts you should consider when trying to decide if Roth contributions, and or Roth conversions makes sense for you in order to grow your retirement savings!REGISTER