Federal methodology is simplistic and ambiguous in dealing with this issue. It makes sense to do a conservative yet honest accounting, though from an aid point of view, it also makes sense to invest in your business, since business assets are counted less than personal ones in determining ability to pay.
Colleges use that information in different ways.
For instance, if you claim a large amount of depreciation in valuing your business, a college might or might not make an allowance. Can Afford College also includes copies of the form. All rights reserved.