HS senior here.
I just submitted my FAFSA and am working on my CSS profile. My parents own another house through an LLC they share. Very recently they began renting out the property, previously it was unoccupied and with 0 income. I am curious as to how I report this and how colleges will look at it.
I imported the IRS info for the FAFSA and have an estimated EFC of $5000. For CSS, do I report the LLC as a “business”, with a value of that of the property? Or maybe only 50% of the property for 1 parent? Can I not report it at all? Also how much would I be penalized in FA for this, including in later years when my parents are receiving another $10k in salary from this house?
You reported the value of the other house on FAFSA, question 91, right? On Profile, I would think the other house is reported in PA-180, “total current market value of your parents’ real estate other than their home.”
You must report it.
You report the LLC as business investment, not as “your parents’ real estate other than their home.” And don’t double report.
You can use this form to estimate your parent’s investment and income from the LLC. Many colleges will require you to send them this form later.
https://financialaid.stanford.edu/pdf/Business_Farm_Supplement_16-17.pdf
I’m not sure about how it was reported on the FAFSA, my parent did most of it.
So, in that first section for the Profile, I can click “no” to businesses and report it later in the forms?
Which specific Profile question are you asking about?
No. You have report now on CSS profile. They will ask you to send the detailed form and other tax documents at the time you submit IDOC (after Junuary).
Registration question #18.
“How many businesses, farms, or corporations do the parents own all or part of?”
You answer 1 (if you parents have only 1 LLC) and other related questions.
Ok, thank you @coolweather
@coolweather not all Profile schools use IDOC.
^ I know. But students still need to send supporting documents about the business. CSS Profile will tell students what and how to send later.
@collweather…I think that will vary by school.
The CSS Profile won’t ask for a speck of supporting information. The COLLEGES might ask for that information.
The student will be asked to link the FAFSA to the IRS DRT. The school might request a tax transcript.
This will vary…by school.