# Example of praise tax calculation ###### Netanya

Let us take a simple example of calculating the appreciation tax, in the case of a tax payment in the calculation of ordinary linearity without entitlement to a new linear calculation (according to section 48A (b2) of the Real Estate Tax Law.

Step One: Calculate the amount of the purchase of the apartment sold (A) + Deductions (B) – Depreciation (C), the amount received is marked D.

Step Two: The amount D must be linked to the index to get the balance of the purchase value. For the period until the end of 1993, he will receive the letter E and for the period until the sale he will receive the letter F.

Third stage: We will calculate the appreciation that is the sale value (D) – (G). Real estate appreciation will receive the letter H. Then we will calculate the inflation amount F – D and mark it with the letter I, as well as the inflationary agreement that owes E – D and mark it with the letter J.

Step Four: Real appreciation will be denoted by the letter K, and is the result of H minus I.

Fifth stage: Before the next stage of calculating the appreciation tax, it should be explained again that according to the linear calculation there are several periods when each period has a different tax level. Thus until 7.11.2001 we will denote the letter L, and from this date until the beginning of 2012 we will denote M, now we will denote the ratio of days passed from the date of purchase A to the day of sale G with the letter N, the ratio of days L to days N in letter P, and the ratio of days M to days N in the letter Q.

Stage Six: Real appreciation is divided, as mentioned, into three periods. One period will be calculated K times P and denoted by the letter R. The second period is K multiplied by Q and denoted by the letter S, and then the balance of real appreciation is counted as K minus R minus S.

Seventh and final step: We will perform four calculations and then add all the results together which will constitute the number of capital gains tax payable.
The calculations are due to the division of periods in the calculation according to linearity, as well as the appreciation charge due to an inflationary amount, R double 47%, another S double 20%, another T double 25% and another J double 10%.

The amount received will constitute the number of capital gains tax payable.
Since in any case, this is not a simple calculation, and in order to simplify the procedure, I have omitted a number of data that can affect the tax calculation, such as the amount of a business loss, as well as a discount for fixed periods and a historical rate. 0 +
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