<p>Several questions:
We have some inherited real estate in another state. I have no idea of its value. How do I value it? This is rural real estate in an area that has a very slow market for land.</p>
<p>We have real estate assests that have yielded income from timber sales. Though for IRS purposes the timber sales are taxed as capital gains and not as business income, can I list the Real Estate value as a business or farm income so that the real estate value is not taxed?</p>
<p>The instructions are vague as to how to value things like this. If you have been given an $ value for the land for tax purposes, that might suffice. You need to contact the attorney or accountant involved. To be sure I would call the number for FAFSA questions. Without complete info, this is not something to get from an internet board. Even the more definitive answers
should be double checked by someone from FAFSA or who works with college financial aid forms.</p>
<p>You may ask them about how to determine the sales value, I think generally the value of the non-first home RE would be the net value if you sold it. On the business question, if you use the timber land as a business or a farm, then you need an LLC, or to incorporate, or a partnership return or to do a schedule C business filing, all depending how you hold title and who else shares it with you. You may ethically be able to claim it as a business, but you would need to be treating it as that business in all things. Can you ask your accountant?</p>