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BDO Israel<br />

Appendix 1<br />

EXAMPLES OF CALCULATING THE CAPITAL GAINS TAX<br />

The following table consists of four examples for calculating the capital gains<br />

tax.<br />

Example A - Inflationary and real capital gains.<br />

Example B - Inflationary gain<br />

Example C - Inflationary gain<br />

Example D - Inflationary loss.<br />

BASIC DATA:<br />

Date of Purchase: January 1, 1991<br />

Date of Sale: December 31, 2010<br />

Known index on purchase date: 110.4<br />

Known index on December 31, 1993: 143.1<br />

Known index on date of sale: 321.1<br />

145

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