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The taxpayer asks whether, to qualify for the reinvestment exemption on a primary residence, the proceeds from the sale must be used to pay down the mortgage of the new residence. The DGT responds that the total acquisition value is considered reinvested, even if part of it is financed through a mortgage loan.
Question posed: Whether, to qualify for the reinvestment exemption, it is necessary to amortize the mortgage on the new primary residence.
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