Business owned assets are not included on FAFSA. Whether the business qualifies for the FAFSA exemption and whethe the ownership of the condo by the business is considered legit, is a whole other story. I know any number of small business owners who have all kinds of assets in their businesses that are not included in the FAFSA.
PROFILE is a whole other story. Doesn’t matter if ownership is a losing financial situation. Most property ownerships are. My MIL owns a whole lot of properties that it costed her to own because she did not want to get rid of them for the prices she could get. Actually, many homes are money pits. Many of us lose money on properties.
If that property is such a stinker, it should be sold to cut those losses. Too bad not done sooner, as the year of the sale will show income for PROFILE purposes . A lot of depreciation, write offs one gets on taxes, one has to add back in for PROFILE. People with small businesses tend to scream bloody murder at PROFILE results.