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I have a high school senior. We'll apply for FAFSA in Jan 2011.
I am a single mom. Income is $49K, and we rent, do not own our home.
However, we own a rental property out of state that produces passive income.
Thus, I file a 1040 return. In order to qualify for the Simplified Needs Test, I need to
1) earn less than $50K - yeah, got it
2) file a 1040A or 1040EZ
Given the rental property, I use itemized deductions, and cannot file a 1040A.
I was wondering if anyone knows, can I convert the rental property into an LLC, and then be able to file a 1040A?
My EFC with the rental property as an investment is $36700.
My EFC without rental property as an investment is $9500.