What is the net worth of your parents’ current businesses and / or investment farms?

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This is question 92 on the paper FAFSA.

Enter the net worth of your parents’ current businesses and / or investment farms as of the day you submit your Free Application for Federal Student Aid (FAFSA). Net worth means current value minus debt (what is owed).

The net worth of your parents’ current businesses and / or investment farms is the amount left over after deducting the debt from the value of each investment. A negative value of one investment cannot be used to reduce the value of other investments.

For example: Your parents own two investment properties.

The first investment property is valued at $100,000. The debt that is owed on the property is $110,000.

To calculate the net worth, perform the following calculation:

(Value of Property) minus (Debt Owed on Property) = net worth

$100,000 – $110,000 = -$10,000

The net worth of this first investment property is considered $0, not negative value of $10,000.

The second investment property is valued at $200,000. The debt that is owed on the property is $100,000.

(Value of Property) minus (Debt Owed on Property) = net worth

$200,000 – $100,000 = $100,000

The net worth of this second investment property is $100,000.

If the net worth of the first investment property is $0 and the net worth of the second investment property is $100,000, then the amount to be reported for both properties is $100,000.

If the net worth is:

Net worth value Enter
Ten million or more 9999999
Zero or less than zero 0

Round to the nearest dollar and do not include commas or decimal points.

A business and / or investment farm value includes the market value of land, buildings, machinery, equipment, inventory, etc. Business and / or investment farm debt means only those debts for which the business or investment farm was used as collateral.

Business value does not include the value of a small business if your family owns and controls more than 50% of the business and the business has 100 or fewer full-time or full-time equivalent employees. For small business value, your family includes (1) persons directly related to you such as a parent, sister, or cousin or (2) persons who are or were related to you by marriage such as a spouse, stepparent, or sister-in-law.

For more information about reporting investments, call the Federal Student Aid Information Center 1-800-4-FED-AID (1-800-433-3243).

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