FAFSA reporting and assets

Paying for College
1

<p>I have a rental home owned in an LLC with another family member on a 50/50 split. Do we have to report the current value of the home as an asset on our FAFSA form? Can it be excluded under the family business provision? If the rental home generates positive income and the LLC pays its own taxes and does not declare any dividends (net stays in the business) does the net profit have to be reported on the FAFSA form?</p>

<p>Thank you.</p>

2

<p>If your LLC is 51% owned by you, then it would be considered a business and not reported on FAFSA. If it is 50/50 with another family member that is reported on FAFSA under the household size, then it’s also excluded from FAFSA reporting.</p>

<p>

</p>

<p>[FinAid</a> | Financial Aid Applications | Small Business Exclusion](<a href=“http://www.finaid.org/fafsa/smallbusiness.phtml]FinAid”>http://www.finaid.org/fafsa/smallbusiness.phtml)</p>

3

<p>I disagree with the above. I don’t think they let you consider real estate holdings a business no matter how they’re held. Otherwise, everyone’s home would be held by an LLC. You can set one up online in 10 minutes.</p>

4

<p>I would not expect claiming an LLC with a single piece of property to fly as a small business. Now if you had 5 with substantial activity, you would be in a better position to claim a business. But one… very doubtful.</p>