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Updated over 1 year ago on . Most recent reply presented by

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Nicholas Reid
  • Portland, OR
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State Taxes on Mortgage Note Interest Received

Nicholas Reid
  • Portland, OR
Posted

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

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