FAFSA - Business value not include in assets

<p>I read on FAFSA form that "Business value does not include the value of a small business if your family owns and controls more than 50 percent of the business and the business has 100 or fewer full-time or full-time equivalent employees. For small business value, your family includes (1) persons directly related to you, such as a parent, sister or cousin, or (2) persons who are or were related to you by marriage, such as a spouse, stepparent or sister-in-law."</p>

<p>So my question is if I put my rental property in a business entity, then will the equity from the rental home be excluded from my assets total? If this is true, what type of business entity will qualify for this...LLC, S corporation, C corporation etc?</p>

<p>Thanks in advance for your time and answers.</p>

<p>What services do you provide to your renters & are those services part of a separate business entity?
When doing your taxes do you put rental income on Schedule E or Schedule C or C-EZ?</p>

<p>
[quote]
At times a student or parent will claim rental property is 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.

[/quote]
</p>

<p>I don't provide any others services.
Right now it is in schedule E...but if it will be put in a business entity such as C corp. or partnership then it may require other forms.</p>

<p>My question still is if I put it in a formal business enity (C or S corp, LLC partnership..etc., then will the quity be excluded from my total assets?</p>

<p>I don't think that will work. I think if it were possible to somehow have your rental property be called a business with few employees, that loophole would have been closed a long time ago.</p>