The title is pretty much the question. I have a subchapter S business and I’m wondering how this will affect financial aid.
It’s a service business, and there really are no assets to speak of (desk, computer, etc. but no vehicles, real estate or expensive equipment). No big item depreciation, which I know for some people is a killer here.
The business provides me with a cell phone, which maybe gets added back in. I think I have heard that mileage, entertainment and depreciation get added back in. Anything else I am missing?
@dadof4kids
This will vary by college. Some schools will look more carefully at those business deductions than others.
Another expense that you didn’t mention is use of space on your home…including utilities. Some business owners deduct a %age of their home because they have a home office…and a %of the related home operating expenses. I do not have personal experience with this…but there have been reports of these expenses being added back in…because really…they are your home.
But lots of variation.
Most important…the net price calculators probably won’t be accurate for you.