His money loaned to others is the same as money still in a bank = asset. Think of it as, "Money in other people's pocket." You don't report money in the bank; you report earnings on that money. The same is true for how this asset is in other people's hands. It isn't reported when paid out (lent) or when paid back. The opposite is true; borrowed money isn't the taxable event and payback isn't reported, either. It's the cost of the borrowing that would be reported for tax purposes.