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Dealing with pressures and changes in the real estate world

What's going on an expensive group? So this week I'm getting into the big shoes of "Entrepreneurs of the Week," thanking Lior on stage. So in a few words about me and us, I am a co-owner of Siftint, a company that has been operating for the past eight years in Orlando, Florida as a real estate agency for local and distant investors. This week I will start with a post slightly different from my regular content, the topic is dealing with pressures and changes…

Responses

  1. I'll add just one point: For US residents using this tool, the ultimate benefit is in the event of the owner's death, so heirs can get the latest in the chain, upgraded to current value, with no tax liability on all profits since the original purchase.
    I'm not an accountant, lawyer or tax advisor, so please consult with whoever he is.

  2. Suggesting that you edit the post again.
    There is no such thing - how not to pay taxes on a house you sold ...
    This is deception !!!
    Maor Stav Buchnick is absolutely right! Offers everyone to read her response.
    That the transfer of assets is not relevant and there is no such thing as tax exemption and deferment of the tax obligation is not relevant in Israel !!!

  3. It's amazing to me that so many people here are going to accompany an accountant. I wonder since when an accountant became a lawyer with expertise in real estate taxation in Israel.

    As long as it's someone who is both a spirit and more and also a real estate taxation expert then on the kippak. But just referring to the spirit… this is not the function.

    There are people who are qualified lawyers with many years of experience working with the tax authorities in the service of investors who help them to conduct themselves properly with authorities and save a lot of taxes by various means.

    When I go to examine the establishment of a company for the purpose of investment in the US, I always use my tax advisor with regard to the form of incorporation, determination of the manner of activity and appropriate tax tracks.

    There are loads of legal issues here that affect how taxation works - so in my opinion, it is best to consult a lawyer first and secondly to understand real estate taxation.

  4. You should be very careful in executing 1031 because you must meet very strict criteria such as: finding an alternative property within a specified tax days. Closing within a specified number of days. Any deviation from this will cancel the 1031.
    Also, you can not sell under a certain name and buy under a different name, meaning if the property is registered in Teitel for my name I can not buy on an LLC that shakes, it must be exactly under the same name that was sold.
    And there are still other details that must be clarified before the 1031 transaction.

  5. As written in detail in previous responses,
    Israel does not recognize the exchange of assets - 1031 Exchange
    And therefore the Israeli tax authorities will require those who do so to tax the capital gains generated as a result of this action.
    Therefore, it is very important, if you still want to do so, to take the accompaniment of the spirit of Israel and the United States.

  6. Just a spicy addition to writing: Doesn't have to swap real estate… that is, can sell a property and buy a collectible (with a certificate) or even create a Picasso art ... and not pay tax by rolling the deal. In Florida, all treatment is performed by specialized companies that specialize in the subject matter and cost of the "bag" is around $ 1000. Just for general knowledge.

  7. Nir, also LLC can be “not transparent”. Know that there is a chance that you will pay double the tax. For the first time in Israel in the tax year of the sale and once again in the end of the investment in the United States because Arav does not recognize the tax paid in Israel in a previous tax year. It is very dangerous for the pocket to do such things without escorting American and Israeli CPAs.

  8. Thank you very much for the detailed response 🙂
    Is it possible to conclude from what you are saying here that if an Israeli citizen is the center of his life in Israel,
    The only way he could enjoy the benefit
    This is by opening up a separate legal entity that is not
    LLC
    For example
    C-Corp

    Maor Stav Buchnick

  9. Hey, there are some inaccuracies. And especially in a post written to the Israeli public, it is mandatory to emphasize them. First, the exchange in question is called in Israel for the transfer of assets.
    For the exchange of assets in both the US and Israel there is no tax exemption, this is a term that is not true, but there is a deferral of tax liability. That is, the tax liability is deferred until the last property in the chain is realized or then the taxpayer will have to pay tax on all profits accrued to him along the way.
    Second, why does the exchange of assets not constitute a real benefit for the ordinary Israeli who invests? Since in Israel there is no tax deferral due to the transfer of real estate assets (recognized in the law that the exchange of capital gains on movable property but not on land). And therefore even if a change is made in the US and we receive a tax rebate, we will have to pay the tax in Israel anyway, so that in fact we did not earn anything. Since capital gains tax in Israel is higher, in most cases, especially those who are involved in real estate activities (then tax rates are higher), we will pay and pay a high tax in Israel.
    Thus, one US state recognized our tax deferral, but Israel did not recognize it and was required to pay the entire tax.
    So, in fact, it's not practical.
    I will note that there are ways to make a change of assets in the US without paying capital gains tax in Israel, and only if the investment is made through an American company that is not transparent for tax purposes. As most members here tend to invest.
    In other words, only a company that pays double tax, corporate tax, and a dividend tax on the distribution of profits, will be able to carry out assets that will be recognized in the US and in Israel. But this is, of course, a form of investment that is not suitable for all investors, especially the small or medium, but for the larger players who, despite the double taxation, still have to act in this way.

  10. All is true, but it should be noted that the tax base for the purpose of calculating the taxable profit at the time of realization will be based on the first asset you sold and future depreciation expenses will also be on the basis of the first asset you sold.

  11. All is true, but it should be noted that the tax base for the purpose of calculating the taxable profit at the time of realization will be based on the first asset you sold and future depreciation expenses will also be on the basis of the first asset you sold.

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