Assets for FAFSA (Student Aid/Parent Asset)

[Steve Sandrews]

Hi, i'm new to forum and searched this topic to no avail

I am completing my first kids FAFSA for college student Aid. They allow asset exclusion for farms and small businesses. They say if you have rental property and use schedule E then your real estate assets count as family assets and cannot be excluded.

However if you use schedule C for your rental property you can exclude the assets as a small business.

I started using Schedule E 20 years ago when I had rental properties and a "real" job (W-2).

For over 10 years now I only make money as a small hands on landlord, purchasing, rehabbing and renting and sometimes selling houses on a small scale (12 units total) but still use schedule E, but list myself as a real esate professional according to IRS.

I do my own taxes via software.

Should i start using schedule C this year, and eliminate schedule E. I know I then need to pay FICA/Medicaid if I have a profit but it is small ($20K plus 30K in depreciation)

Anybody have thoughts or links?

Thanks