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A taxpayer inquired whether receiving a refund due to a floor clause requires adjusting the tax deduction for investment in the main residence, provided the funds are used to repay the loan principal. The Directorate General for Taxes (DGT) ruled that no adjustment is necessary if the funds are applied directly to the amortisation of the principal.
This ruling provides legal certainty for taxpayers receiving floor clause refunds, confirming that direct repayment of mortgage principal does not trigger a requirement to recalculate or adjust previous tax deductions related to the main residence.
The tax team reviews your specific situation.
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