<p>So, my father owns a gas station and is in the process of selling it and He never filed a 2013 income tax return file. I'm filling out the CSS Profile and am clueless as to what to write. Please help. Can having inconsistencies on my profile disqualify me from getting any scholarships/financial aid/ loans? </p>
<p>Some schools award merit scholarships without looking at “need” or FA applications. </p>
<p>However, you’re not going to get aid if your dad didn’t file his recent taxes if he should have. </p>
<p>Is your dad going to file soon? If not, you need to look for schools that will give you merit scholarships based on your stats.</p>
<p>I see that you’re looking to apply ED to a school. That isn’t a good idea considering your situation.</p>
<p>Has your dad said how much he’ll pay for college? If not, ask him.</p>
<p>(keep in mind that the gas station is a substantial asset, and could really negatively affect aid. Plus being a business owner could also affect getting aid.)</p>
<p>he’s said he won’t be able to pay any of it and by the time i apply for regular decision, he will have got rid of it @mom2collegekids</p>
<p>It doesn’t matter when he gets rid of the gas station. Fact is, he owned it most of 2014, and that is the year that you need to report income and assets for the financial aid for,ms. If your dad actually makes any money selling the gas station, that money will,be an asset sitting in your bank account…unless it is all spent by the day you file your financial aid forms.</p>
<p>Some other tax expert will have to tell you how capital gains work for sale of business properties.</p>
<p>You will be required to have completed 2014 tax returns which the colleges will want to see one way or another. </p>
<p>Yes…you do have a huge issue.</p>
<p>What does your mom say about all of this?</p>
<p>You have a big problem here because as others have said, it is highly likely that the 2014 returns will be needed at some point of this process, and it looks like your father might not get around to filing them. If you are applying early to some school, which is why i assume you are filling out PROFILE right now, you may get an estimated package based on what you put on that PROFILE but the money is not likely to be released until it is verified with the 2014 forms. </p>
<p>The way it works with PROFILE is that you are supposed to estimate your family’s earnings for 2014. The amount is what would be listed as AGI on the IRS 1040 is the income number. That he owns a business, whether he is in the process of selling it or not, is going to be evaluated, and how he reports things for his business for tax purposes is particularly going to be scrutinized. The other important item on PROFILE is what the value of your family assets is, and that includes that gas station. It’s the value as of the date you fill out the form, not a future date. </p>
<p>If your father is planning to sell that gas station and has plans for that money like paying off debts, which may make a huge difference in 2014 income, a gap year might be the way to go to get your family finances stabilized, and your dad’s tax status straightened out. </p>
<p>I think you need to rethink this whole ED thing because by the time you get the “bad news” that it’s not affordable, you will have missed many of the deadlines of the schools that might give you large merit for stats. </p>
<p>What schools are you applying to NOW that will give you large merit for your stats?</p>
<p>what are your stats?</p>
<p>when is your dad going to file taxes?</p>
<p>Thumper is right. If you sell that asset in 2014, the amount your dad gets for the sale will be income…likely big income since gas stations cost a lot of money. </p>
<p>Your dad says that he can’t pay ANYTHING…so what makes you think that you’d get FULL AID to pay for school??? If you don’t get full or near full aid for college, how will you pay to go? </p>
<p>YOU can only borrow $5500 for frosh year.</p>
<p>Is he selling it in 2014? Maybe the sale can be delayed to January 2015.</p>
<p>Even if he doesn’t sell it till 2015, it would still be a big asset. </p>
<p>And if the dad won’t do his taxes, the student isn’t going to get aid. </p>
<p>Yes, but in the year it is sold, it could be both income and an asset. Depends on various factors.</p>
<p>It can’t be both income and an asset. Data is as of the date the FA request is filed. Either you have the asset or the income.</p>
<p>If there’s a capital gain on the sale, that’s income in the year sold and if the proceeds are sitting in an account when finaid forms are filed, that amount is an asset.</p>
<p>The problem is that it is counted as an asset when owned the day PROFILE IS FIELD, market value of the business is so evaluated on PROFILE. If sold, the proceeds if sitting anywhere or as a receivable is also counted as an asset. Which could be a problem if the money is earmarked for, say paying off debts, or buying a car, or home repairs, or other such things. Unitl those checks clear the accounts, you got assets. The day the checks clear, it’s a big fat zero. </p>
<p>How any capital gains from the saie of a business is counted, I have no idea. If they are reported on the tax return as a gain, absolutely, PROFILE will take it as additional income and if you have the proceeds sitting there the day you file the forms, those are assets. You sell a stock or any asset, you get hit up with the gains as income and then the proceeds if you don’t spend it by the time you file the form. Makes no difference if you are going to invest into another asset that you are keeping, but if you plan to spend the proceeds, it can make a big difference depending on the amounts.</p>
<p>If there is income from the sale and the money sits in an acct, then it can be a double hit. However, it sounds like the family is having financial difficulties, so the income may still be low, and there is asset protection up to about $45k for married people. </p>
<p>Either way, doing ED is risky unless you also have all your ducks in a row (applications submitted) for schools that will give large merit for stats. Every year we see kids concentrate on their ED apps…and then they wait to see results before submitting more apps. When they find out that their ED school isn’t affordable because parents are expected to pay too much, Dec scholarship deadlines have already passed. </p>
<p>Yep…it can be an asset…and income. Just like money you earn from your salary is income…and if it’s sitting in your bank account on the day you file the FAFSA…it’s also an asset.</p>
<p>Easy to be both.</p>