We have a second house right next door. Years ago we rented it, but stopped. The plumbing doesn’t work and it’s not in the livable condition. We still pay property tax and insurance on it. We use it as a storage, canning room, and just a glorified shed. We don’t plan on renting it again. Last income we had from it was 5 years ago. Do we report the value of it on FASFA as investment? What value would that be?! We can’t report market value of this size house since it is not in condition that would be rented at all without heating, cooling, or running water. We cannot turn on water because all pipes are busted.
I would think you would have to report it somehow. You can at least report the land value if the house is not in habitable condition.
Edited to add, you can get the land appraised or use the value from your property tax assessment (our state breaks down land and buildings, but I don’t know if that is the case everywhere).
It sounds like this property has a separate title, therefore it would be an investment. Like any real estate investment, you would have to determine you equity.
Yes, it is an asset. If you were to sell it, you would make some money. If you can’t figure out the worth from your property tax assessment, you will need to get an appraisal. The value is the market value less any mortgage/home equity loan you may have on it.
Without heating, cooling, running water, and uninhabitable, it might be fairly classified as a liability since you pay property taxes & insurance on the property.
This response is not intended for tax return/FASFA classification purposes.
Ask your CPA. Hopefully, they will know how to classify it. I’d assume it’s an asset. While it’s not making $, it has value. So like someone owning a stock they haven’t sold, there is value and the school would make the assumption it can be sold. But on these things, I’d always check with a CPA.