Author Topic: Is owning a rental property classified as a business in Colorado?  (Read 1505 times)

Slow2FIRE

  • Bristles
  • ***
  • Posts: 266
I know that the IRS classifies rental properties as a passive activity.

Does anyone know if the state of Colorado would call a rental property a "business"?

I ask because of the Colorado DMV statements below on their FAQ:
https://www.colorado.gov/pacific/dmv/faqs-registration
Quote from: DMV
If you own or operate a business in Colorado or, are gainfully employed in Colorado, or reside in Colorado for 90 consecutive days you are a resident of Colorado. After becoming a resident of Colorado you must register your vehicle within 90 days or you will be imposed vehicle registration late fees.


Thanks!

patchyfacialhair

  • Handlebar Stache
  • *****
  • Posts: 1260
  • Age: 34
Re: Is owning a rental property classified as a business in Colorado?
« Reply #1 on: October 04, 2017, 08:42:04 AM »
In general, a vehicle should be registered where it is usually located, with some exceptions for temporary residencies, students, and military. It's really pretty simple.

So I guess I'm just wondering a little more about the background of your question. Do you keep a vehicle in CO but live out of state? Is the vehicle used solely for maintenance of the rental property?

For what it's worth, CO registration fees are generally very cheap for older vehicles.

tralfamadorian

  • Handlebar Stache
  • *****
  • Posts: 1217
Re: Is owning a rental property classified as a business in Colorado?
« Reply #2 on: October 04, 2017, 08:53:22 AM »
It depends.  I live in an area where one county does require a business license while the county adjacent does not.  Call the county finance office of the area in which you are looking to purchase. 

clarkfan1979

  • Magnum Stache
  • ******
  • Posts: 3358
  • Age: 44
  • Location: Pueblo West, CO
Re: Is owning a rental property classified as a business in Colorado?
« Reply #3 on: October 05, 2017, 02:27:31 AM »
In general, a vehicle should be registered where it is usually located, with some exceptions for temporary residencies, students, and military. It's really pretty simple.

So I guess I'm just wondering a little more about the background of your question. Do you keep a vehicle in CO but live out of state? Is the vehicle used solely for maintenance of the rental property?

For what it's worth, CO registration fees are generally very cheap for older vehicles.

I live in Hawaii, but have 2 cars registered in Colorado. My wife and I live in Colorado for approximately 95 days during the summer. When registering my RV in Colorado they asked for my Colorado drivers license. I told them that I live in Hawaii, but spend an extended vacation in Colorado during the summer. I teach college.

It took some convincing, but they eventually let me do it.

I also own a rental in Colorado. Creating a business for rental property is not required.