Hey guys.
So my parents are divorced and my dad(NON-custodial parent) remarried.
Now my father has a small old business that he listed.
Now, my step mother started a business in march this year, so it isn’t even listed on the 2019 tax returns that my father filed. It also has a current market value of 0. Also my father has no share/interest in it.
So, do we need to include my step mom’s business on the css profile?
Assets are reported as of the date your FAFSA/CSS PROFILE are filed. So the business should be reported with a market value and value of assets. A lot of times the college will disagree with the market value claimed. They use their own ways of evaluating a business just as they use their own way of evaluating how much you should be paying, your need. Also, aren’t there some assets that the business owns, like a computer, pencil, paper, other office type supplies? Things she can deduct as a business expense when she does file her taxes and that she uses for her business?
How was this business reported on PROFILE?
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Well my dad reported it. It was reported that step mom had 100% ownership and the income and stuff were for 2019, hence 0 obviously. He also gave market value as 0.
Also, the businesses are both set in the family home, where things like computers are also general purpose use, so I guess they don’t count?
And I emailed the financial aid office of the college that requires the custodial parent’s info. Lets see what they say.
I’m guessing that is a typo and you meant to write “college that requires the NON-custodial parent information”.
Your tag is Harvard so are we to understand that this is the college you are talking about?
I guess my big question is…what are your parents’ (and the one spouse) incomes in total? This small business might not matter at all if those other numbers are sufficiently high.
around $105K per year. And even my dad’s business income is quite low. Its mainly the job income.
And yes typo sorry
Update- They replied “we are looking for 2019 information, you will not need to include the business information from 2020 on your uploaded documents”
Yes. This current PROFILE used 2019 income, which is zero for your stepmother’s business. The assets can be a while other situation since the assets used are as if date the form is completed. Like right now. If your stepmother owns a business right now, it has some value. If she used a home computer or other personal items for her business, the values are prorated by percent use between personal and business. As is her car use, furniture use , etc etc. She will be allowed to depreciate the items proportionally on her tax forms this year and also deduct business expenses from her business. How any school assessed a business is an individual thing. I have seen businesses losing money even, assessed market value. it is possible Harvard and the other PROFILe schools will ask you additional questions to come up with a value for this business.