<p>Can my parents claim a house an asset if they owe money to the bank? My dad says he doesn't know how to claim it as an asset, part of our networth, if it's still his liability. (I'm not sure if that made sense, I was just typing my dad's question)</p>
<p>To clarify more, my dad and his sister bought a house together as an investment. My dad's unsure if its an asset due to it being a real estate investment since he's still paying it off. Also, if it is, is it okay if I split the house's value in half due to my aunt owning half of it?</p>
<p>My parents' adjusted gross income was higher than the amount, of both their salaries; is there something wrong with that?</p>
<p>Also, it seems that my parents' income is higher than I thought it was, which makes me scared that I won't get any Financial Aid because no FAFSA questions ask about the house we live in, which is kind of expensive due to living in a big city, and they're still paying the mortagage on it (and will be for 10 more years?).</p>
<p>The investment house is an asset - it's net value would be it's current value less the mortgage still owed on it. If the house is owned with someone else he reports the value of his share.
from <a href="http://studentaid.ed.gov/students/publications/completing_fafsa/2007_2008/ques5-5.html%5B/url%5D">http://studentaid.ed.gov/students/publications/completing_fafsa/2007_2008/ques5-5.html</a>
[quote]
Part ownership of asset. If your parents own an asset with others and therefore only own a portion or percentage of the asset, they should report the net asset value that represents only their share of the asset owned. They would determine the current market value of the asset, reduce the value by any outstanding debt, and then multiply the net asset value by their ownership percentage. This result is then reported on the FAFSA.
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<p>The house you live in is not reported as an asset on FAFSA. It also does not take into account the mortgage payments being made on it.</p>
<p>The adjusted gross income is a question for a tax expert. Your parents must know why it is higher - other income maybe? Is there rental income from the investment property? Other investment income?? There is no way anyone else can know that.</p>