<p>In 2005 my dad died and he owned a house valued then around 36000. No will. There are five children, but we left the house in his name.</p>
<p>We finally sold the house in June 2010 for 50,000. Which means, I will report it on my 2010 taxes as my 1/5 gain of 2,300 after repair costs.</p>
<p>Does this need to be reported on my financial aid form? It was never in my name. I couldn't sell it because of the other siblings needing to agree to sell. Slow market (took us 5 years to sell it). </p>
<p>I'm applying for assistance for 2010-2011, not 2011-2012.</p>
<p>It looks to me like in 2009 it was still part of a not-completely settled estate. You finally received the income in 2010 when the estate was closed. If that is the case, then I’ would expect that it wouldn’t have been reportable until 2010.</p>
<p>Let’s hope that one of the experts here sees this and weighs in. I’m really curious now!</p>
<p>It sounds like the sale of this house proceeds went into the estate, and you received $2300 as your share of the inheritance. Is that correct? If the money is in the bank now it is reported as an asset just like any other money in the bank. </p>
<p>I believe an inheritance is not considered income on your tax returns, but you might have to list it as “other income” on the FAFSA…not really sure. Regardless, it’s not a huge amount and more than likely won’t have a large impact on your EFC calculation per FAFSA.</p>
<p>I think whatever money is attributable to the rise in value of the house from $36K to $50K over the 5 years would be a long term capital gain, and would be reported on your taxes (schedule D) and be included in your AGI. It would not go on FAFSA as other income. If the $2300 is still sitting in the bank, you would have to report this as an asset as well.</p>
<p>In addition, the repair costs may or may not add to the basis (the $36K) depending on what was done, why they were done, and when they were done. For example - repairs made to put the house on the market are deductible, but the time is not unlimited; that is, if you painted 3 months ago it is deductible, if you painted 5 years ago, it is not.</p>
<p>Whatever part of the inheritance is attributable to the net value of the house when OP’s father died would be other income, I think, except it happened 5 years ago (or whenever it went through probate). So this amount (if any) would only be reported as an asset, not as other income.</p>
<p>Not an expert, free advice is worth what you pay for it. </p>
<p>She inherited the house in 2005. The inheritance is not taxable. However, the house was sold in 2010. Either in the name of the estate, or in the name of the taxpayer. If in the name of the estate, their will be a tax form listing the capital gain which will flow into the tax return of the taxpayer. That will be taxable in 2010 and has to be included in AGI. If in the name of the taxpayer, the capital gain (but not the value of the inherited house) will be reported on schedule D and again, claimed in AGI.</p>
<p>notrichenough & 3bm103, you both are correct and the attorney’s CPA said that my 1/5 share of the sale was 10,000, minus repair costs (new roof, floor, etc), now resulting is a captial gain of 2,300. I have to complete Sch. D when I report the 2,300 on my 2010 taxes.</p>
<p>I spent the money immediately to pay off debt.</p>
<p>The home stayed in my daddy’s name the whole five years and the personal property taxes were paid by my brother each year. We live in VA and we never heard anything about a probate (whatever that is).</p>
<p>I just don’t know if I need to report the money on the FAFSA since it will be reported on 2010 taxes, not 2009. There is nothing on my 2009 tax return about the house, so I didn’t think I needed to list is on the FAFSA for the 2010-2011 school year. </p>
<p>I’m needing to take two classes for my teacher recertification, so my need is for 7 credit hours of funds at the community college. I’m thinking if I put this on the FAFSA, even though we don’t have the house anymore, it will put me over the limit and I won’t get any assistance. </p>
<p>We have a family of four with an annual income of about 34,000. My husband is the only one that works. I don’t have any money to enroll in these classes otherwise.</p>
<p>Oh, Virginia! I’ve heard stories about this kind of situation. One friend has a “share” of property there that can’t be sold because one of the twenty-odd heirs keeps paying the taxes in the name of the long-dead relative. Maybe you should run this by the financial aid office at a local college. I’m sure they’ve dealt with this situation before.</p>
<p>There’s no situation, no outstanding mortgage. We sold the home June 2010, no problems, no arguing. I just don’t know if I should report it since it was sold 2010, not 2009, and I’ve already spent all of my share.</p>
<p>I’m not a tax expert and inheritance money questions can be confusing to me…but if the money is NOT reflected in 2009 and you are applying for 2010-2011 (current school year) aid, I believe you don’t report it on that FAFSA.</p>
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<p>I guess the way <em>I</em> see it (and someone can verify if I’m right)…if you had done the FAFSA for THIS current school year last January like most people…this house would NOT have been sold. So…for purposes of what is on your taxes…it would not have been on the radar screen at all.</p>
<p>If you had money right now in your savings (you don’t) it would have been reported as assets are reported as of the date of the filing of your return regardless of when they “appeared” on your taxes.</p>
<p>You WILL report it when you are using the 2010 tax info for your 2011-2012 FAFSA.</p>
<p>Where did the money for the repairs come from WHEN they were being made? It seems to me that your “asset” in this place was never really more than, like $3000 by 2009, so how much damage would that do to your FAFSA numbers?</p>
<p>“I’m needing to take two classes for my teacher recertification, so my need is for 7 credit hours of funds at the community college. I’m thinking if I put this on the FAFSA, even though we don’t have the house anymore, it will put me over the limit and I won’t get any assistance.”</p>
<p>Have you talked with the financial aid people at the CC about this? Because you already have a degree, I think that you would only be eligible for unsubsidized Stafford Loans. (Someone here will correct me about that if I’m wrong.) If I am correct, then the numbers you put on the FAFSA won’t matter. Anyone who files the FAFSA can get an Unsubsidized Stafford Loan even if they are as wealthy as Bill Gates.</p>
<p>You guys are making this money from the house a lot more complicated than it is. The dollar amount from the house would be listed on his tax return and would be included as a part of their AGI and THAT is how it would be reported on the FAFSA.</p>
<p>Not for the 2010/11 FAFSA…thumper is correct, the income would not have been reportable in 2009 so it cannot be part of the AGI. Assets are always as of the date of the FAFSA filing, since the house proceeds aren’t sitting in her account they are not reported for 10/11 either.</p>
<p>I think happymom is right about the FA part unless there’s a special provision in some aid program specifically for teacher recertification. Pell and other grant aid is normally only available up to the point where you receive your first bachelor’s degree.</p>
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