Im Self employed. Bought a business with a loan. I know the interest payments are deductible. Do the Principle payments reduce my taxable income?

[MinhT · Accepted solution]

No, the principal repayments of the loan are not tax deductible. They do not reduce your taxable income. They only reduce the balance due in the loan.

[sdbish]

 Bummer. So as an example if I had income (after deductions) of 100,000, in 2018 but I paid 50,000 of the loan principal  I am going to be taxed on the 100,000.

[MinhT]

Unfortunately, yes. You can only deduct the interest portion of the loan repayments.