Real estate taxation · Implementation Instruction
Real Estate Taxation Implementation Instruction 8/2009: "Key Money", Allowing Its Deduction in Calculating the Gain
Summary
The instruction provides that in calculating the gain on the sale of a right in real estate by a person who was a protected tenant and subsequently purchased the ownership right, the key money paid to acquire the protected tenancy will be allowed as a deduction. The expense is adjusted from the date of the expense until the date of purchase of the ownership and is allowed as a deduction as at the date of purchase of the ownership, and documentation of actual payment is required, since not every protected tenant paid key money. For key money for a protected tenancy in business premises paid up to 31.3.64, the Director must be satisfied that it was not already allowed as a deduction by the assessing officer, and section 3 of Implementation Instruction 24/85 was cancelled.
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
- 8/2009
- Publication date
- 17.6.2009
- 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 8/2009, "Real Estate Taxation Implementation Instruction 8/2009: "Key Money", Allowing Its Deduction in Calculating the Gain" (17.6.2009) [Hebrew]
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