Property Ownership
In Ohio, a real estate investor who holds title to multiple investment properties in their personal name may expose themselves to greater risk than holding in an LLC because:
AIndividual ownership is taxed at higher rates
BPersonal liability attaches to all properties — a lawsuit on one property could affect personal assets and other properties✓ Correct
CIndividual ownership cannot qualify for depreciation deductions
DLenders will not issue mortgages to individuals for investment property
Explanation
Holding investment properties personally means personal liability exposure — a claim arising from one property can attach to personal assets and other properties. An LLC provides liability protection separating personal and business assets.
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