No, I actually meant Israeli tax law. When I buy an investment property in Israel, there are heavy purchase and capital gains taxes, meant to discourage real estate investment, as part of a misguided effort to bring down housing costs. (The way to bring down housing costs is to build more housing, not prevent people from investing in it.)
If I have American-source income, I must pay Israeli taxes on it, after applying foreign tax credits for the amount due the US government. I'm trying to determine whether the above-mentioned Israeli taxes apply only to RE in Israel, or also to RE in America.
Nevertheless, I appreciate your information, and am sure that it will be useful to me. Thank you.
Incidentally, I'm actually a dual American-Israeli citizen (I was born and grew up in California), so presumably US tax law would apply to me in the same way that it applies to any other US citizen.
Yes, certainly I need to speak to a tax expert who specializes in those of us that need to deal with both systems; my question here was merely meant to get some preliminary information, so that I don't waste money and time with simple questions.
Next time you're in Israel, drop me a line--I'd love to have you (and your family, if they're with) over for a meal!
