Legal Question in Business Law in Colorado

corporation involved in real estate

I am Colorado C-Corp since 1985. I sell computer related services. Since September 11th my business has dryed up. I sell mainly to travel companies which are in deep trouble. I have liquid assets from retained earnings. The real estate market in my State is becoming depressed. I have previous experience in real estate investment. I would like to use corporate assets to buy distressed property, fix-up & resell or rent out. What limitations and or IRS issues should I be aware of?

Asked on 11/15/01, 1:39 pm

1 Answer from Attorneys

Louise Aron Attorney at Law

Corporations may own real estate

Louise Aron

Attorney at Law

Lakewood Office:

1536 South Ingalls

Lakewood, Colorado 80232 USA

(303) 922 7687

fax (303) 922-1370

Cherry Creek Office:

300 South Jackson #100

Denver, Colorado 80209 USA

(303) 780-7339

Satellite offices:

Boulder - 4450 Arapahoe Avenue, #100

DTC - 4610 South Ulster, #150

A TOLL FREE NUMBER is available to clients outside the Denver metro area.

My web site

My email: [email protected]

LawGuru User

Dear LawGuru User:

I do not have enough information to answer your question with certainty. I need to examine the corporation's Bylaws and Articles of Incorporation.

That said, corporations may legally buy and sell real estate under Colorado Law. It is often an undesirable way to own real estate, however. A main reason for incorporation is to protect shareholders' assets from liability for corporate obligations. A close corporation which owns substantial assets (e.g. real estate) stands to lose these assets should it be sued.

In order to answer your question about the relative tax consequences of a corporation (versus individual) ownership of real estate, I would need to conduct further research.

Thank you for contacting LawGuru.


Louise Aron

Attorney at Law

My web site

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Answered on 11/16/01, 5:58 pm

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