Ido Shacham - Real Estate Tax Solutions

Estate planning, wills, trusts, divorces, and other family and domestic relationships all have a tax impact.

There are specific implications for transferring property between family members:

• Betterment Tax Calculations:  In principle, improvement calculation is the difference between the property’s current selling price and the property’s historic purchase price. The purchase price is linked to the Consumer Price Index.
• Tax Rates: Tax rates are a percentage of the increase in value and depend on many factors, including the property’s purchase date, the property sale date and how the seller acquired the property (e.g. whether it was purchased, received as a gift, inherited, etc.).
• Inherited Property: For inherited property, the betterment tax is based on the date and price for which the property was purchased by the testator – the person designating the property’s ownership in a will. However, if the property was inherited from someone who died during the years when estate tax was applied, the purchase price is calculated according to the estate tax amount paid and the purchase date is set as the date of the testator’s death.
• Property Received as a Gift: For gifted property, the betterment tax is based on the date and price for which the property was purchased by the gift giver. However, exceptions to this rule apply if the gift giver died during the years when the estate tax was applied, and if registration was not completed prior to the death.
• Tax Exemptions for Residential Apartment Sales: When the property receipt meets certain criteria, sellers of residential apartments benefit from tax exemptions on the transaction.

View my lecture on family financial relations and prenup agreements:

We’re experienced with estate plans, assessing international taxes, secondary taxes like VAT, customs, and purchase taxes, and are equipped to provide comprehensive support in these areas. Our clients can count on us for professional, multi-disciplined, efficient and dedicated service.