<p>My siblings and I inherited an industrial building from my father. My brother uses it for his business. I know I need to report this when I do the FASFA, but I can't find how to fairly represent the value. Do I deduct estimated sales costs? What about any tax liability that would be associated with a sale? My brother isn't in a position to buy out my share at this time, and I certainly wouldn't be able to sell just my portion to an outside party. </p>
<p>Even if the building could be sold, it won't sell quickly. </p>
<p>I am a single parent who makes just over $50,000. My ex-husband filed bankruptcy in 2013 and has made it clear he doesn't feel any responsibility to assist with his son's college expenses. I want to be honest, but I don't want to inadvertently lose financial aid opportunities due to overstating the value either. (I know that he won't qualify for the Pell grant).</p>
<p>I believe it is the net proceeds after sales costs and taxes that are reported. You would report your share, not the entire amount.</p>
<p>Does our brother pay you rent for using your half of the building?</p>
<p>His business pays rent to both my sister and myself. I include this rent as income when i pay do my taxes.</p>
<p>Oops - just saw my typo - ‘our’ brother instead of ‘your’ brother.</p>
<p>So you have a Schedule E with various expenses including property taxes and depreciation?</p>
<p>You might be able to do some research online or ask a commercial real estate broker in your area for the approximate sale value per square foot for commercial buildings in your area. Then you can make a rough calculation on your own based on the square footage of your building. Divide that by the number of owners. I do not believe that you’re supposed to subtract costs of sale and taxes, just your share of the equity, i.e, gross fair market value less any mortgage encumbrances.</p>
<p>Yes, I have a schedule E. My brother pays the taxes, so he takes that deduction. I do report income and depreciation on Schedule E. His accountant set up the depreciation schedule, and is familiar with the FASFA, but not able to provide guidance regarding how the value is determined for the FASFA.</p>