Rental Property?

CTScoutmom
Wed, 19 Dec 2012 08:13:49 +0000

Yes, it is considered rental property, and the rental income needs to be reported on schedule E of her tax return. She can then deduct a portion of the expenses from the house (mortgage interest - not the whole payment, utilities, etc). If those expenses effectively wipe out the income, it will have very little impact on your FAFSA. As shown in sylvan’s link, if she is renting out rooms, but not apartments with a separate entrance & mailing address, it is considered part of your primary residence, so is not reported as an asset.