Seller Mistakes That Can Unexpectedly Increase Taxes (714)
When selling an apartment in Israel, it is important to consider taxes — particularly the capital gains tax (מס שבח).
Even small mistakes in document preparation, property valuation, or transaction execution can lead to unexpectedly higher taxes.
This article explains the most common seller mistakes and how to avoid them.
Common Mistakes
- Incorrect property valuation
- Using outdated or incorrect valuations can result in a higher taxable base.
- Solution: hire a professional appraiser and document the current property value.
- Unaccounted improvement expenses
- Many sellers forget to include renovation and improvement costs, which reduce taxable gains.
- Solution: keep all receipts and documents confirming expenditures.
- Errors in claiming exemptions
- For example, the exemption for selling a single residence.
- Solution: verify eligibility for exemptions in advance and correctly fill out the tax declaration.
- Incorrect ownership dates
- Ownership dates affect tax calculation and possible benefits.
- Solution: provide your lawyer with the full ownership history.
- Ignoring specialist consultation
- Trying to save money and handle the sale without a lawyer often leads to extra taxes.
- Solution: consult a lawyer specializing in real estate transactions in Israel.
Tips from Unehasim
- Check all documents before submitting the tax declaration.
- Include all costs related to renovations and improvements.
- Consult specialists in time to verify eligibility for tax benefits.
- Use a lawyer to correctly calculate taxes and ensure a safe transaction.
Following these recommendations allows sellers to minimize tax risks and avoid unexpected expenses.
Contact Unehasim Specialists
If you plan to sell an apartment in Haifa and want the capital gains tax calculated correctly, Unehasim specialists can help:
- Review documents and deductible expenses
- Calculate taxes taking all exemptions into account
- Advise on eligibility for tax exemptions
- Ensure a safe and transparent sale
