In a nutshell:
Borrowed money is not your money. It never was, is not now and never will be. Not ever. So you don't report borrowed money as income. You don't pay taxes on money that is not yours. Period.
When paying back borrowed money, the interest paid each year can be deducted if the loan is a qualified loan. If the loan is not a qualified loan, then you have absolutely nothing what-so-ever to report on any tax return, concerning it.
