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A taxpayer inquired whether they could retain the tax deduction for investment in their main residence after cancelling their current mortgage and entering into a new one, which involved removing a co-debtor and potentially increasing the principal amount. The Directorate General for Tax (DGT) ruled that replacing the loan does not exhaust the right to the deduction, provided the new loan is used to repay the previous one.
The tax team reviews your specific situation.
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