rental business != small business

There is a small business exception in FSFSA reporting, that small business owner doesn not have to report in FSFSA.

But rental business is not a small business under FSFSA.  

你听说LLC不用报是误传。是small business owner不用报自己的buisness。但是出租房是passive income，和 schedule C active business不是一回事。

http://www.finaid.org/fafsa/smallbusiness.phtml

 

Rental Property

Occasionally a family will try to characterize a rental property as a small business in order to have it excluded as an asset on the FAFSA. For example, the family might own a vacation home which they rent when they aren't using it themselves.

This situation is addressed in a margin note on page AVG-19 of the 2006-2007 Application and Verification Guide:

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.