Questions for Note Investors

[Pete Nater]

Thanks for your insight. I appreciate it, really. Here are my questions;

How is the income from mortgage payments to the note holder taxed? Is it unearned income at a lower rate? Are there any tax tips you might recommend? 

Is it true that a note buyer who buys a NPL at a discount from a bank has to pay tax on the difference between the UPB and the purchase price over the life of the loan? If yes, would it be at a capital gains rate? Other? Does it apply if you buy the notes from a source other than a bank? Any tax tips you might share? Thanks

What is the average price of NPL's these days, as a percentage of BPO or UPB?

Thanks