I’m filling out my CSS profile, and I’m confused as to how I should list my parents rental property. My parents own a rental property that’s listed under an LLC. Would this be considered as a business or asset, and which section should I list under? If it helps, my parents’ filed a schedule E last year in addition to a 1040.
I read something on Forbes that business get valued at 60% of the market value, but schools will still know because of the IDOC. I want to be as honest as possible but also maximize the aid possible.
The property is an asset since they use Schedule E. I used the value that our rentals could be sold in 48 hours. And you would deduct any remaining mortgage amount from that. I had a friend who is a real estate agent pull me comps each year that I held onto in case I ever got questioned and to establish value when I used Schedule E. There are many different ways to do this, but obviously you want the lowest possible value within what the government allows on the FAFSA You’ll get everything you need from their income tax if you are filling thr FAFSA out, but the value of the rental property is probably nowhere in the tax return so you’ll need your parents’ help with that.
@momofthreeboys That is very helpful. thank you! So say, for example, a property that’s worth 250k has a 200k mortgage, would the market value be 50k? Or would it still be 250k since theres a separate question about the amount owed. My parents arent completely sure about the market value either, so where could I find that and have evidence of market value?
Thumper1, re your question, “And would the income from these rentals be income on the fafsa and Profile?”, as far as the Profile goes, rental income should go on the ‘Parent 1040’ page of the Profile where the it states, “Line 17: Rental real estate, royalties, partnerships, S corporations, trusts, etc.”