Been doing a fair bit of research over the last few days and haven't seen much mention of notes and taxes. Are there any tax benefits with notes? If i invest in a performing note I assume I will be paying standard income tax on the interest? Can anyone point me towards some threads on taxes and notes or a good book or two? Just wanted to give a big thanks to all the contributors to this forum.
You are correct, income from note P&I and any other borrower payments are considered ordinary income. From a tax perspective, a self directed IRA would provide the best benefit. Feel free to contact me via PM and I'll send you some resources. Bob