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Good morning. The promissory note is not likely going to be considered taxable income
because it's not the equivalent of cash and you are a cash basis taxpayer. Only if you receive cash or the cash equivalence is something taxable. In the case of a note, the case of Cowden v. Commissioner, 289 F.2d 20 (5th Cir. 1961) established that a promissory note is not the equivalent of cash unless all of the following are true: (1) the promise to pay is unconditional; (2) the promise is made by a solvent person; 3) the promise is assignable; 4) the promise is not subject to set-offs; AND 5) the promise is marketable.
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