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A taxpayer inquired whether the judicial reimbursement of mortgage establishment costs should be taxed under Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that such restitution does not constitute income; however, it requires the adjustment of the deduction for investment in the main residence if that deduction was previously applied to those amounts.
The ruling clarifies that while reimbursed mortgage costs are not taxable income, they must be excluded from any tax deductions previously claimed for investment in the main residence, potentially leading to a tax adjustment.
The tax team reviews your specific situation.
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