1.0Arizona LLC Lawhttps://www.keytlaw.com/azllclawRichard Keythttps://www.keytlaw.com/azllclaw/author/1llclawyer/Should a Corporation Own Real Estate?rich600338<blockquote class="wp-embedded-content" data-secret="NwhHeN7Epq"><a href="https://www.keytlaw.com/azllclaw/2017/01/corp-real-estate/">Should a Corporation Own Real Estate?</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://www.keytlaw.com/azllclaw/2017/01/corp-real-estate/embed/#?secret=NwhHeN7Epq" width="600" height="338" title="“Should a Corporation Own Real Estate?” — Arizona LLC Law" data-secret="NwhHeN7Epq" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script type="text/javascript">
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Question: I intend to buy a commercial real estate property. Should I form a corporation to own the real estate? Answer: No. Nope. Absolutely not. No way. Negative. Are you kidding? Ix nay. Uh-uh. Nah. Not on your life. No way. No way José. Ixnay. I hope you don’t misunderstand my position. An article in Forbes called “Why You Should Never Hold Real Estate In A Corporation” states: “Take, for example, the client who contemplates the type of entity that should be used to hold a piece of real estate. For most tax practitioners, this would elicit the following Pavolovian reaction: ‘You should NEVER put real estate inside a corporation.’ And while there are very few NEVERS in the tax world, this one is pretty darn accurate.” See also “The Perils of Holding Real Estate in a Corporation,” which discusses the federal income tax reasons it is a bad idea for a corporation to own real estate.