My client holds an illiquid Real estate LLC project in his IRA. Thinks that the project is likely to fail but other LLC members wish to have the asset’s market value reduced now so as to reduce their custodians administrative and holding fees.

My client wants to know how his own account may be impacted if the majority of other LLC members vote to have the project appraised and the project’s value is reduced.

Is there any positive impact that could come of the asset’s value reduction?