Real estate taxation · Implementation Instruction
Division of Estate Assets among Heirs: Section 5(c)(4) of the Real Estate Taxation Law: 07/2010
Summary
The implementation instruction presents cases examined in tax rulings regarding section 5(c)(4) of the Law, which provides that a first division of estate assets among heirs is not deemed a sale, provided that no consideration was given from outside the estate assets. Among other things, it was determined that granting use and fruits to a surviving parent is not a first division, that a division in kind not in accordance with the shares in the inheritance order is possible if there is a reasonable explanation for the value gaps, and that a division after decades of actions in the assets does not qualify for the relief. It was further clarified when two estates of spouses or of a child and their parent will be deemed one estate, and when a division of assets received on the liquidation of a real estate association whose shares were inherited will be deemed a first division.
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
- 7/2010
- Publication date
- 21.12.2010
- Topics
- Inheritance and gifts, Real estate associations
- Sections of the Law mentioned
- 71 49ב 5 67 72ב
Official document
Source: The publication on the Israel Tax Authority website (gov.il, Hebrew)
Suggested citation
Israel Tax Authority, Implementation Instruction 7/2010, "Division of Estate Assets among Heirs: Section 5(c)(4) of the Real Estate Taxation Law: 07/2010" (21.12.2010) [Hebrew]
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