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Updated over 1 year ago,
State Taxes on Mortgage Note Interest Received
Hello BiggerPocket Wizards!
I currently hold mortgage notes on 3 multi-unit properties I sold to a friend. The mortgages are registered with the county in Oregon where the properties are located here in Oregon. I currently live in the same county in Oregon.
I'm considering a move to a state where there are no income taxes (Washington, Alaska, Nevada, or Florida), and I'm having hard time determining the tax treatment of the interest income I receive from the Oregon-based mortgage notes.
So, the simple question is this: Will the interest income I receive from those notes be taxed at the state level in a state that has NO income taxes, considering the mortgages are based in Oregon?
Many thanks in advance!
--Nico