4 Guidelines For Claiming Rental Property As a Business on the FAFSA
Rental Property on the FAFSA has always been an area of contention in my mind. The manner these assets are listed on the FAFSA can mean the difference of thousands of dollars in financial aid. For the government to tell you what is and is not a business enterprise that is making money kind of frosts me. The 2009-10 FAFSA Application and Verification Guide states the following…
At times a student or parent will claim rental property as a business. Generally, it must be reported as real estate instead. A rental property would have to be part of a formally recognized business to be reported as such, and it usually would provide additional services like regular cleaning, linen, or maid service.
If at all possible, you want to claim real estate as a small business, and therefore qualify for the small business exemption on the FAFSA form. Here are … Read more