Selling Property Over 60? You Might Be Due a Tax Refund

Individuals who sell property after turning 60 may be eligible for significant tax refunds, even if they have already paid capital gains tax (masבח). While age 60 itself does not guarantee a refund, it can significantly impact tax calculations when combined with other financial factors.

Tax experts explain that the capital gains tax paid at the time of sale is not always the final amount owed. By considering the seller's personal income, pension, and the ability to spread the capital gains over several years, it's often possible to demonstrate that less tax should have been paid. This process requires a detailed examination of the individual's financial situation across relevant tax years.

Accountant Yaniv Cohen, founder of Zemert Ha'aretz Tax Refunds, emphasizes that he investigates a seller's income, employment status, pension, and other financial data before concluding the tax assessment. He notes that two individuals over 60 selling similar properties can end up with vastly different tax outcomes based on their individual income streams and available tax brackets.

Zemert Ha'aretz shared examples of refunds ranging from approximately NIS 78,000 to NIS 95,000 for three sellers over 60 who sold rights in the same property. In other cases, the firm has secured refunds of over NIS 330,000, and even additional refunds for clients who had already received one from another firm.

The possibility of spreading capital gains over up to four tax years, or seeking refunds for overpaid income tax up to six years back, means that many individuals may still have avenues for recovery. Cohen advises anyone who sold property and paid capital gains tax, especially if they were over 60, retired, experienced income changes, or had capital losses, to investigate their situation before assuming the tax paid is final.