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The inquirer asks whether they must return the tax deduction for their main residence if the floor clause refund is used to repay the mortgage. The Directorate-General for Tax (DGT) responds that if the funds are deposited into the taxpayer's account, the deduction must be regularised, as the bank did not directly reduce the principal amount.
Taxpayers receiving floor clause refunds directly into their bank accounts must ensure their main residence tax deduction is adjusted accordingly to avoid incorrect claims.
The tax team reviews your specific situation.
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