Real estate taxation · Implementation Instruction
Calculation of the Gain on the Sale of a Residential Apartment Let for Residential Purposes: 5/2007
Cancels an earlier instruction Cancels Implementation Instruction 14/90.
Summary
As at the date of its publication (2007), the Instruction sets out how betterment tax is calculated on a taxable sale of a qualifying residential apartment that was let for residential purposes, according to the track chosen by the landlord for taxation of the rental income: the regular track, the reduced 10% tax track under section 122 of the Ordinance, or the exemption track under the Law on Exemption from Tax on Income from Letting a Residential Apartment. In all the tracks, current expenses that would have been deductible under the Ordinance will not be allowed as a deduction from the gain, and the depreciation that the landlord was entitled to claim during the letting period will be deducted from the acquisition value or added to the sale value, even if it was not actually claimed. Where the apartment is sold with an exemption from betterment tax, the track chosen has no significance, and the Instruction does not apply to an apartment used only as the residence of the seller and his family. The Instruction cancels Implementation Instruction 14/90.
The summary was written by the office and reflects the instruction as of its publication date. The binding text is the official Hebrew publication, and the instruction may have been updated or affected by later legislation and case law. The English title and summary are an unofficial translation.
Publication details
- Type
- Implementation Instruction
- Number
- 5/2007
- Publication date
- 27.2.2007
- Topics
- Betterment tax
Related publications
Official document
Source: The publication on the Israel Tax Authority website (gov.il, Hebrew)
Suggested citation
Israel Tax Authority, Implementation Instruction 5/2007, "Calculation of the Gain on the Sale of a Residential Apartment Let for Residential Purposes: 5/2007" (27.2.2007) [Hebrew]
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