Can SMLLC owe to that single member personally?
I purchased the note (in my personal name) on a 4 family at a cost of  $10,000 (original note amount $110,000; principal remaining $100,000).

I then purchased the deed (in a single member LLC) to the property (subject to the note) for $5,000.

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

Is my tax basis (for depreciation and later sales purposes) $15,000 ($10k for note plus $5k for deed) or is it $105,000 ($100k remaining on note + $5k for deed)?

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?

I am struggling with figuring out whether an LLC for which I am the sole member can owe money to me personally.

Thank you!

Amounts are changed for simplicity.

&amp;#x200B;
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