Hello all - my parents sold a property they were renting out last year (2019). The sale of the property inflated their annual income by a large amount (though they did not make much on it due to the renovations needed). On the 2019 tax return it looks like their income was 4 times what it normally is. the money from the sale of that property went to pay capital gains taxes and pay off the remaining mortgage on the only other property they have, our single family home. Now they have no savings outside 401K, and only the income from their jobs. Is there any chance of me getting financial aid this year? I will be starting college in 2021 . Thanks.
Your parents should request a professional judgment review for one time income. Some schools may remove the amount from income and add it in as an asset … but they will also recalculate taxes to remove the amount paid for capital gains related to the sale of the house. It may or may not make a difference to your aid if the school does this, but it’s worth asking (each school, if you are a senior considering more than one school). Note that not all schools will do this, and they do not have to do it.
I would include your in-state public schools on the list of schools that you apply to. As @kelsmom said, it is hard to predict what this will do to your potential financial aid.
Thank you! We will try it!