Tax strategy for buying deed to property I own note on

[Joseph Skoler]

I purchased the note (in my personal name) on a 4 family at a cost of $30,000 (original note amount $152,000; principal remaining $142,000).

I then purchased the deed (in a single member LLC) to the property for $20,000.

What is the smartest way to handle this with respect to taxes?

Am I correct that my tax basis is $162,000 ($142k + $20k)?

Should I forgive the debt and issue a satisfaction of mortgage?  Should I make payments on the debt?  Should I leave the debt there and not make payments?

Thank you,

Joseph