All Forum Posts by: Joseph Skoler

Do I understand correctly that if I forgive the loan then, because the LLC is not the borrower, there is no taxable event related to the LLC?

Further, if I forgive the loan, does that mean that the balance due on the loan is a loss for me personally?

There are no other debts/liens.

Thank you! 

I still have it.  I haven't done anything with it.

That is, the LLC that owns the property still owes me (personally) the money.

But I read (to me, very confusing) things about that not being possible.

Okay, thank you.

Thank you for clarifying.

Would you mind suggesting how best to treat this transaction?

I really need help making the best tax situation here.

I bought a note (owner in my name) from a bank at a discount.  For ease of analysis, lets say I paid $10,000 on a note with a balance due of $100,000.

I then bought the deed to the property in an LLC of mine. Again for ease, lets say I paid $20,000.

The public records (tax forms completed at closing) show that I paid $120,000 because they require the buyer to total the price for the property plus any current mortgage debt.

Can I properly say that my tax basis (for depreciation purposes) is $120,000?

Thank you!

Sure could use some guidance. 

Thank you. 

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