Heirs of an Elderly Man Who Died Before the Sale Day in an Urban Renewal Project Will Not Automatically Qualify for Tax Benefits

In depth

The Tax Authority has published a position paper stating that eligibility for tax benefits for the elderly in urban renewal compounds is examined on the sale day, according to the identity of the parties on that date. Eligibility is examined according to the identity of the parties on that date, and not according to the condition of the elderly person at the start of the project. According to the paper, heirs of an elderly man who died before the sale day will not automatically be entitled to the benefits that would have been granted to him.

The heirs will be able to receive the special compensation, including two small apartments instead of one apartment, but the tax exemption will be determined according to their individual eligibility. The position paper notes that the date of death may affect the economic viability of the transaction for the heirs.

The position paper states that the tax exemption for heirs is not guaranteed, and that they may receive an exemption only if the sale of the apartment to the developer was actually completed. The industry warns of financial harm to families and delays to projects, and calls for the rights of heirs to be arranged in advance.