<p>Then why not sell and move your business to a lower price piece of land, sound like that ocean view is going to waste!</p>
<p>I don't have a dog in this hunt -- no second properties, no investments, nothing at all by way of assets except our dumpy 1000 sq. ft, 60-year-old house -- however, I do think there are ways that additional property is not always dealt with equitably.</p>
<p>I have a friend, very hard working, very low income. She has a couple undeveloped rural lots that she inherited. Due to her low-income she has no retirement savings at all, no pensions, nothing. Those pieces of land <em>are</em> her retirement savings. If she had that money in a retirement account, from what I understand it would be a protected asset, but since it's in property it's not. Is that correct?</p>
<p>geeps, does that lot qualify as a farm? Sure sounds like it would. If I recall correctly, farms are treated differently from investment real estate; maybe that would make a difference.</p>
<p>nice thought..unfortunately, I believe it must be 5 acres minimum.</p>
<p>geeps, you say you have a business on the property. You don't have to claim the value of a business if it employs fewer than 100 people. Is the property an asset of the business? Profile schools might look at it differently on the business supplement - but FAFSA is pretty straightforward.</p>
<p>Finaid.org's explanation:</p>
<p>The small business exclusion establishes the following criteria for a small business to be excluded from assets on the FAFSA:</p>
<pre><code>* Small business with 100 or fewer full-time equivalent employees. The size of the business is based on the number of full-time equivalent (FTE) employees, not the income or assets of the business. Two half-time employees are counted as the equivalent of one full-time employee.
Or any part of such a small business. Any assets owned by the small business are also excluded as assets, in addition to the business itself.
Owned and controlled by the family. The small business must be owned and controlled by the family. This means that more than 50% of the voting rights must be owned by the family as listed in household size on the FAFSA. (If there is more than one class of stock with different voting rights, the family must own more than 50% of the voting rights in order to control the business.)
</code></pre>
<p>'rentof2, that's correct. However, if she is low income, her assets could be excluded. If her income is less than $30k & she could file a 1040A/EZ OR she (or anyone in her household) has received federal means-tested benefits in the past 24 months, she would qualify for automatic 0 EFC ... and given the same set of criteria but income $30k-50k, she is eligible for simplified needs (which ignores assets).</p>
<p>Thanks for the information, kelsmom. I'll pass that on to her.</p>
<p>Thumper pointed out a special circumstance that the OP has that could make a difference at some schools. If the family is paying tuition for a special needs child that is a situation that I have seen taken into account.</p>
<p>"Is the property an asset of the business?"</p>
<p>Hmmm..didn't think of this angle. The property is not registered under my business name. Anyone know if that can be changed? How exactly would the property itself be considered an asset of the business? Te property is zoned residential, not commercial.</p>