FASA & Bank Account Question

sk8rmom
Thu, 19 Jan 2012 18:56:45 +0000

Assets are always reported as of the date that FAFSA is filed, so the ownership in 2011 would not apply. It doesn’t sound like the payment your mom received is a business asset but, if it is, it doesn’t make sense to keep it in a personal account. Please read the actual FAFSA instructions regarding small/family-owned businesses:



90. Net worth of business and/or investment farm. Business or farm value includes the current market value of land, buildings, machinery, equipment, inventory, etc. Do not include your parents‘ primary home. Do not include the net worth of a family owned and controlled small business with not more than 100 full-time or full-time equivalent employees.
Business/Farm Value – Business/Farm Debt = Net Worth of Business/Farm
For business or investment farm value, first figure out how much the business or farm is worth today. An investment farm is a farming business where the parents do not reside on the farm, nor do they materially operate the farm.
Business or investment farm debts are what your parents owe on the business or farm. Include only debts for which the business or farm was used as collateral.
Subtract the amount of debt from the value. Indicate this amount in Question 90 for net worth of business and/or investment farm.
To report current market value for a business, your parents must use the amount for which the business could sell as of the date of the application. Also, if your parents are not the sole owners of the business, they should report only their share of its value and debt.