Generally speaking, borrowed money is not your money. It never was, is not now and never will be. Therefore, borrowed money is not reported on your tax return as income.
Nice philosophical argument but that's not why borrowed money is not reported on your tax return. It's not reported on your tax return because it must be repaid and therefore is not taxable income. No matter what a loan creates an asset in the form of the money received and also a liability in the form of a debt that must be repaid in terms of accounting principles.
