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The applicant asks whether they can continue to claim a tax deduction for investment in their main residence after cancelling a mortgage loan and replacing it with one from a family member. The Directorate General for Tax (DGT) rules that replacing one loan with another does not exhaust the right to the deduction, provided the new loan is used to repay the previous one.
This ruling provides legal certainty for taxpayers who restructure their mortgage debt through private financing, ensuring they do not lose tax benefits as long as the funds are used for debt repayment.
The tax team reviews your specific situation.
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