Sold an Apartment at a Loss? Here's How You Can Use It to Offset Capital Gains in Other Channels

47.5% of short-term apartment investors sold at a real loss in 2025, according to Finance Ministry data. The article explains how to offset this loss against capital gains from selling stocks or other assets, saving tens of thousands of shekels in taxes, while detailing deductible expenses, timing rules, and the possibility of carrying the loss forward to future years.

A slowdown in sales and price declines in the real estate market led to 47.5% of investors who sold in 2025 an apartment they held for up to five years doing so at a real loss, with the rate reaching 62% in the south. This emerges from data published by the Deputy Chief Economist at the Ministry of Finance, Galit Ben Naim. The article explains how to use a loss from selling an apartment to offset capital gains from selling stocks on the stock exchange or other assets, thereby saving tens of thousands of shekels in taxes. Attorney and CPA Maury Ampal explains that in the case of a loss, it is advisable to report the transaction in full calculation to establish the loss for offset purposes, even if no tax is due. Also discussed are deductible expenses such as purchase tax, legal fees, and brokerage fees, as well as the possibility of carrying the loss forward to future years. Attorney and CPA Shai Einat addresses the challenge of missing receipts and recommends bringing alternative evidence such as an appraiser's opinion and insurance documents.

Sold an Apartment at a Loss? Here's How You Can Use It to Offset Capital Gains in Other Channels