<p>We have a rental property business. No one draws a salary from the business, the money is put back in to pay the principal, expenses, etc. Is it reported as an asset on the FAFSA?</p>
<p>Yes. The equity of your rental property is listed as an asset. The rental income is listed as income. I do not own rental property but isn’t there a schedule that you complete that at least tells you the net income/loss with regards to the rents? The value of the property is considered a second piece of real estate you own I believe, and the the value minus any outstanding mortgage (your equity) would be listed as an asset.</p>
<p>I’m hoping someone with rental properties can clarify this for you more succinctly.</p>
<p>Schedule E is typically where the rental income is reported. That ends up being profit or loss that is reported as part of the AGI. The property itself is an asset, and thumper is correct in how that is reported (market value-mortgage owed, if any).</p>