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The taxpayer asks whether replacing an existing mortgage (for which they already claim the deduction) with a new one for a higher amount preserves their right to the deduction. The DGT rules that the right is maintained for the portion of the new loan used to repay the previous debt, but not for any excess funds used for other purposes.
This ruling clarifies that refinancing or restructuring a mortgage does not automatically forfeit the tax deduction, provided the new funds are specifically applied to the outstanding balance of the original loan.
The tax team reviews your specific situation.
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