<p>I have found several old threads regarding how to place a value on both Limited Partnerships as well as LLC’s when filling out the FAFSA and CSS (i.e. asset value, if any). In the LP’s I am not an active participant in managing them, but rather a passive investor; several of these are not liquid in any way, shape or form. so can not be accessed for funds, and a couple of them, due to the economic downturn, could be total losses.</p>
<p>In the LLC I am the managing partner, but only own 5% of the entity. It is a small business but the value is very hard to quantify again, due to the recent economic conditions in the industry we play in.</p>
<p>So, do I place any value on them as far as assets for FAFSA and do I even need to show them as assets on the CSS Profile?</p>
<p>You do need to show them. And… sorry… but the colleges do not seem to care that they are not liquid. Although you can clarify this in the comments area. If you think your equity is negative in some, be sure to show that (and comment on it).</p>
<p>No unfortunately the liquidity of an asset is not relevant. Even you, yourself, will factor into the value of the limited partnership if you are active in the business. There are different formulas for valuing a business depending on the business/product/industry. You can do a google search or contact someone who specializes in selling small business or finances small businesses and ask to get a valuation on both the LLC and the limited partnership if this hasn’t been done on a regular basis. Keep any e-mails, etc. in your file as back-up in case you need to back-up your FAFSA or Profile.</p>
<p>Person #1: “When I asked FAFSA how it should be treated they told me that it depends on who controls the assets. If you are a limited partner, you have no control and therefore the asset legitimately has no value.”</p>
<p>Person #2: “So then do you leave the limited partnerships in which you are a limited partner without any control off the form? If not, what do you do with the information?” </p>
<p>Person #1 in response: “Leave them off the form. This is what I have been told by by people at FAFSA.”</p>
<p>So, a bit confused on the LP’s. The LLC I can estimate the value of the business and my portion thereof. In the end, I will have K-1’s for all of these if further explanation is needed.</p>
<p>^^I was thinking of the profile because you had mentioned profile - but check this out with regard to the FAFSA…you don’t say if it’s a family business, but family business can be excluded on FAFSA under certain circumstances</p>
<p>Maybe kelsmom will chime in (resident expert on all things FA!). It seems to me that we also don’t have control over assets like mutual funds, but we have to report those. It does not seem like Limited Partnerships should be off the hook for that reason… Even if you don’t have to report it on the FAFSA, you probably do need to put it on the CSS.</p>
<p>intparent, with a mutual fund you can find the current value easily; no so much with a Limited Partnership. Again, referencing the earlier thread from 2006 it appears that someone talked to FAFSA and they gave them the “advice” to leave it off the form… I obviously don’t want to do that if it is incorrect as I want to be accurate with the information I provide to them and CSS but certainly don’t want to overstate my assets if I don’t need to :)</p>