Principal Payments

Principal Payments

The portion of a loan payment that reduces the outstanding balance of the loan.
References in periodicals archive ?
Co-op members would rather keep those fees down with low principal payment loans and continue to refinance into the future than take on a standard amortizing loan whose principal payments would raise maintenance charges.
Both the Tax Court and the Ninth Circuit concluded that a corporation had to recognize the full amount of gain a year before it received any principal payments on the note (James F.
This is one of the few instances when principal payments are tax deductible.
Note that in all instances prior to the establishment of the trust and the consummation of the transaction, the stock's potential posttransfer appreciation must be considered in determining if the inclusion of the stock {and related earnings) in the transferor's estate at date of death value would be more detrimental from a tax standpoint than the inclusion in the transferor's estate of the installment principal payments, after-tax interest on the installment obligation and the related earnings from these assets (i.