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Good morning. A loan is not a taxable event....It is simply a loan where each person's wealth does not increase or decrease but rather just changes forms....the lender changes cash to a note receivable and the borrower receives cash with an offsetting note payable. With no change in wealth, there is no taxable transaction. Thus, no reporting is required.
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I meant a transfer tax, not an income tax. For example in Florida I would pay 35 cents on each $100 of the amount of the promissory note, according to FL statutes:
201.08 Tax on promissory or nonnegotiable notes, written obligations to pay money, or assignments of wages or other compensation; exception.- (1)(a) On promissory notes, nonnegotiable notes, written obligations to pay money, or assignments of salaries, wages, or other compensation made, executed, delivered, sold, transferred, or assigned in the state, and for each renewal of the same, the tax shall be 35 cents on each $100 or fraction thereof of the indebtedness or obligation evidenced thereby. The tax on any document described in this paragraph 1may not exceed $2,450.