An elderly relative passed away and left you an apartment in a TAMA building. How much tax will you pay?
The Israel Tax Authority has published a position paper clarifying the tax liability for heirs of elderly individuals who passed away during urban renewal projects. The date of death relative to the 'sale day' determines whether the heirs are entitled to the unique tax benefits for the elderly.
The Israel Tax Authority has published a position paper clarifying the tax liability applicable to heirs of elderly individuals who passed away during urban renewal projects, such as TAMA 38 and evacuation-construction. The central question is the date of death relative to the 'sale day' – the date on which the transaction is finalized for tax purposes. If the elderly person died before the sale day, the heirs will not be entitled to the tax benefits and unique considerations granted to the elderly, but will be assessed based on their own eligibility alone. If the death occurred after the sale day, the benefits will continue to apply. The position paper joins a previous position from March 2026 regarding the sale of an apartment received as an inheritance in an urban renewal project.