Hi Matt Shirley, I am also confused in choosing the best IBDs value to remove relatedness between individuals. I agree with your comment, but what about the plink as they mention to remove the unrelated individuals having Pi-HAT value greater then 0.05. The original wording from Plink website if given below,
"Scan the plink.genome file for any individuals with high PIHAT values (e.g. greater than 0.05). Optionally, remove one member of the pair if you find close relatives. (Alternatively, to keep them in but just exclude this pair from the segmental analysis, see below)"
See this post How large would inbreeding coefficient be to be anomalous? "Third-degree relatives are 12.5% equal IBD (Pihat 0.125)"