SmartMoney Blogs

Ask SmartMoney
Your personal finance questions, answered.

How Do I Calculate the Value of Nontrading REITs?

Question: A significant portion of my IRA is invested in two different nontraded commercial real estate investment trusts. I need to start taking required minimum distributions in 2012, and I want to know how to do the calculation for something that has no specific value.

– Allan Weber, Maryville, Tenn.

Answer: The Financial Industry Regulatory Authority doesn’t require nontrading REITs to be revalued until 18 months after they’re first offered (and once a year thereafter). If you’re within that initial window, you can treat the offering price as your value. If you think the assets are worth something other than the amount on the REIT’s statement, ask your IRA trustee, such as a bank or a broker, to confirm as much in writing, says Ara Oghoorian, president of ACap Asset Management in Beverly Hills, Calif. It’s the trustee’s duty, in fact, to correctly value what’s in your account. And you may need such confirmation if the tax man comes knocking .

For more:


We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (3 of 3)

View all Comments »
    • *******

      It’s a Little off Topic but Anyone Looking for a Job Should Check Out this Website!

      They are Hiring People to Work from Home for $67/hour

      This Job Program has saved Our Whole Family from the Recession!

      And I Can Work from Home with my Kids !


    • 1

    • -1′

About Ask SmartMoney

  • Ask SmartMoney has a single, simple mission: Answer your questions. Answers are written by the staff of and SmartMoney magazine, with the help of outside experts. Topics cover investing, spending, retirement planning, saving for college, insurance, taxes and more. Submit your question in the form below, or email