I am struggling with the idea of including full market value of an asset on my financial aid applications that would be heavily taxed upon sale and other significant selling costs. For example, a second home valued at $100k will give me about $85k available for tuition after I pay capital gains, transfer tax, and commissions. Whereas $100k sitting in my savings account means I have $100k available for tuition. Is it legitimate to account for this in the stated value?
No. The same concept applies to income. AGI is reported when income is asked for, and yet after paying income tax and FICA, few people will walk away with the full AGI amount available to pay college expenses.