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The taxpayer asks whether paying the mortgage on the property awarded to his ex-wife can be deducted as a compensatory pension. The DGT rules that it cannot, as the settlement agreement establishes that there is no economic imbalance or obligation to pay a pension.
This ruling clarifies that mortgage payments made under a divorce settlement do not qualify as deductible compensatory pensions if the agreement explicitly states there is no economic imbalance or pension obligation.
The tax team reviews your specific situation.
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