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The most controversial coat in human history plays center stage in this week’s Parsha. What was Yaakov thinking when he aroused the violent jealousy of the brothers against Yosef by gifting him a special coat?The Radak says the coat was a natural showing of love from Yaakov to Yosef. He was his favourite son, and it showed. The Chizkuni on the other hand, says it was to appease Yosef who was having a rough time feeling left out of the brotherly clan. According to these explanations, the coat had nothing directly to do with the dreams and Yosef’s aspirations.The Sfono explains that Yaakov was trying to insinuate something significantly more far reaching with the gift. The coat wasn’t your average Shaina Coat or Bekisha, it was a coat of royal design. It was the uniform of a future leader in training. Yaakov believed the dreams and wanted to give his helping hand in their fulfilment. The ill-fated judgment comes back to haunt Yaakov, as it is that exact coat which is brought to him as “evidence” of Yosef’s fate. The coat provides a striking symbolism of not just his son, but also his dynasty, the kingdom of Bnei Yisroel being ripped to pieces and covered in blood.The exact usage of coats and clothes as deductible business expenses has been in the spotlight for long time. On the one hand, people do buy special clothes specifically for their line of work. A policeman, surgeon, fire fighter, professional swimmer most certainly have clothes which they buy specifically for their work and are for sure a legitimate expense.On the other side of the spectrum, it goes without saying that you can’t turn up to work, even in Israel, not wearing any clothes at all. You have to wear something. So all clothes are a business expense?The Israeli Tax Authorities lay down the boundary at anything you could wear out of work in a day to day setting is not deductible. An Israeli lawyer tried to claim his tie as a business expense. The court ruled that even though he never would, since he could wear a tie in normal settings it wasn’t allowed.There hasn’t been a test case of a Rebbe claiming his Streimel is purely for work purposes, but according to this rule he’ll probably fall short.So back to Yosef. According to Radak and Chizkuni, the coat was a gift and had nothing to do with any leadership role. It is definitely a private expense. According to the Sforno, it depends. If, as some say, the coat was multicolored, it would only be worn on special occasions and could not be socially acceptably worn to Mincha on a Tuesday. Therefore it could be claimed by Yaakov as a business expense for “Bnei Yisroel LLC”. If, as some say, it was a regal blue, meant to be worn the whole time and could be worn on ordinary occasions as well, then it’s not deductible.For any Coat related or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il.Good Shabbos.

Vayeishev 5786 – Joseph and the Amazing Tax-Deductible Dream Coat

&nbsp; There is a well-established custom on Shabbos Parshas Vayishlach that someone in shul will inevitably come over to me, excitedly announcing that they’ve found my name in the parsha.When the Torah lists the various kings who descended from Eisav, it tells us about Hadad, whose city was Pau, and whose wife was Meheitavel, “the daughter of Matreid, the daughter of Mei Zahav” (36:39). Of course, the literal meaning of “Mei Zahav” is Goldwater. Such yichus!But who was this mysterious “Mei Zahav”? The commentaries debate it fiercely.Rashi implies that Matreid and Mei Zahav were the same person, with “Mei Zahav” being a nickname. Ibn Ezra disagrees, arguing that Mei Zahav was the grandfather. Alternatively, he suggests Matreid and Mei Zahav were the mother and father of Meheitavel. Ralbag offers further possibilities—perhaps Mei Zahav was a foster parent or a grandmother. One thing is clear: the Torah goes out of its way to mention someone who seems completely tangential to the storyline. Even the Radak was puzzled.Rabeinu Bachayei sheds light. He explains that Matreid and Mei Zahav were indeed the same person. “Matreid” comes from tirda—a person constantly driven by worry and toil, working endlessly to acquire wealth. Yet he was also “Mei Zahav”—someone for whom gold flowed like water. This is the sort of family Eisav intermarried with: people obsessed with making money yet never satisfied by it.The Torah includes this detail to warn us about such a miserable type of individual, even if the figure appears only on the margins of the narrative.At the same time, the Torah’s view of wealth is far more nuanced. Chazal tell us (Eiruvin 86a)* that Rebbi and Rabbi Akiva respected the wealthy. The Meiri explains that they themselves were wealthy and understood that money is a tool—when used correctly, it enables tremendous good.Modern tax systems—including Israel’s—often punish high earners with incremental tax rates. The assumption is that “those with the broadest shoulders should bear the greatest burden.” Besides being economically counterproductive, this attitude is fundamentally immature. The Torah’s view is that wealth should be respected, not demonized. When society views wealth as a positive force rather than a treasure chest to plunder, it can be used wisely for the benefit of all.If you’d like help with gold-related or any other financial services, feel free to reach out: aharon@goldwaterfs.co.ilGood Shabbos!

Vayishlach 5786 - Goldwater's Finances

The Israeli taxi driver is one of the country’s most beloved institutions. He will regale you with his life story, explain how he only became a taxi driver after giving up careers as a Rosh Yeshiva or a dentist, and describe how he could stop the Russia-Ukraine war—all within the span of a 10-minute journey.This week we read about the travels and adventures of Yaakov Avinu. One journey, in particular, stands out: the journey that never happened.The Gemara (Chullin 91b) says that when Yaakov arrived in Charan, he was unsure whether he had passed over Har HaMoriah, the site of the future Beis HaMikdash, where his ancestors had prayed and he had not. This caused him great distress, so he decided to go back. Immediately, a Kefitzas Haderech (“shortening of the path”) occurred, and he suddenly found himself on the holy mountain of Har HaMoriah.There is much debate as to how exactly Kefitzas Haderech occurs.The Chida asks: How could Yaakov be unsure whether he had passed over Har HaMoriah? He explains that there had been a previous Kefitzas Haderech when Yaakov first travelled from Be’er Sheva to Charan. He simply did not understand how it worked. Was it that an angel carried him on what would have been an 18-day journey in just a few hours? Or had Charan itself been miraculously uprooted and brought near Be’er Sheva, only to return to its proper place?The Ben Yehoyada disagrees. He finds it unreasonable to suggest that Charan was uprooted. Why would Hashem perform two miracles—moving Charan back and forth—instead of just one? Rather, he explains, Kefitzas Haderech can occur in one of two ways: either one travels on a cloud in the sky, or one’s leg strides miraculously lengthen. Yaakov was unsure which had happened. Had he been on a cloud, he would not have passed through Har HaMoriah; had he been on miraculous strides, he would have. He simply did not realize what was happening, as he was too immersed in having the right kavanos and Yichudim—intentions and spiritual focus.It seems Israeli taxi drivers face a similar problem. According to Israeli law, a taxi driver must turn on the Moneh (meter) for every journey. They are allowed to charge whatever the passenger agrees to, but the meter must be on. This was introduced a few years ago as a way of tracking taxi drivers’ income. A recent investigation by the Tax Authorities found that a staggering 80% of taxi drivers do not do this. This move costs the government millions in lost tax revenue each year, as passengers simply experience a modern-day Kefitzas Haderech.For any taxi-related or other financial issues, please reach out at aharon@goldwaterfs.co.il.Good Shabbos.

Vayeitzei 5786 – Taxes and Taxis

Ever had it happen that money just appeared in your bank account? That the balance was far higher than what you were expecting? It may sound like a dream to some, but it can be a nightmare for others. There is little in the world more disturbing than not knowing what is going on with one’s finances—whether business or personal.The Torah tells us that this is exactly what happened to Yitzchak. He began an agricultural venture, planting and reaping in the land of Gerar. Despite the land being particularly infertile and the year being one of famine, he managed to produce an impressive return of 100× equity in a single year (26:12). That’s an IRR of 9,900%, even under the conservative assumption that it took only one year to produce.The Midrash (Bereishis Rabbah 12:6) comments that Chazal generally discourage measuring one’s material gains, stating that “blessing is not found in something that is counted, weighed, or measured.” The philosophical basis for this is that Hashem avoids performing open miracles; therefore, He is less likely to intervene when the result would be immediately noticeable. If accounts remain messy and stocks are unmeasured, G-d can “get away” with increasing blessing under the radar.So why, then, did Yitzchak measure his crops against the advice of Chazal? The Midrash explains that he did so solely in order to give maaser, a tenth of his profits to charity. The message of prioritization is clear. It wasn’t the cash flow or the profit margins that interested Yitzchak. He put in his effort, but the bottom line was in the Hands of Hashem. Nevertheless, Yitzchak chose to be meticulous in accounting so he would know exactly how much to give to those in need.If you have unexpected money in your account or other financial issues that require assistance, please reach out at aharon@goldwaterfs.co.il.Good Shabbos.

Toldos 5786 – Yitzchak’s Accounts

The Cave of the Patriarchs (Tomb of the Patriarchs, Machpelah), a religious shrine, in the downtown of Palestinian city of Hebron, West Bank, Palestine

In real estate they say only three things matter: location, location, location.Avraham needs a place to bury his beloved wife Sarah, and he is set on Maaras HaMachpelah as the appropriate spot. He goes about negotiating the purchase of the plot from the Bnei Cheis, and specifically Efron.The key point of contention is the pricing of the plot. The Ramban (23:9) points out that Efron was unaware that there was any burial plot in the cave—let alone the two people fashioned by G-d Himself, Adam and Chava.The Or HaChaim adds that had Efron known this, there is no way he would have sold the cave for that amount of money. How then could Avraham have “underpaid” Efron when buying the cave?The Or HaChaim answers that this is why Avraham specifically asked Efron to give him the cave as a gift. That way he could claim that the gift was, by definition, given irrespective of the money that exchanged hands. The value of land can never be truly evaluated. As the Gemara teaches us, there is no principle of overcharging (ona’ah) in land transactions. (It is a debate amongst the Poskim as to the parameters of this statement.) Some explain this is due to the idiosyncratic nature of real estate—no two properties are exactly alike. Others explain this is due to the subjective nature of property: one person dreams of buying a home next to the biggest shul in town, another couldn’t think of anything worse.Land valuation is a major issue in taxation policy. In Israel the authorities tax both the buyer via Mas Rechisha and the seller with capital gains. For taxation to work there has to be a “fair value” test for the transaction. What’s stopping Reuven from buying a dira from Shimon for “2,000,000 NIS” and “gifting” another 300,000 NIS? Yet the authorities struggle to define what fair value should have been.A recent audit revealed major flaws in the government’s systems for assessing the value of real estate transactions. The government has two different databases that record land ownership and transactions. (G-d knows why we need two databases for the same thing!) Needless to say, the two databases don’t line up with one another. Over 450,000 apartments are reported as being in buildings with zero floors. And don’t forget the over 900,000 apartments that simply don’t exist in the Tax Authority’s records.The Tax Authority’s response to the audit: “Our data is based on the self-declarations made by taxpayers reporting whatever they want to report… you have to appreciate we don’t check every case… even those we do check, we don’t check all the details.”As a public service, I’d like to give the Tax Authorities a helping hand by officially reporting a sale/purchase:Location: Maaras HaMachpelah Buyer: Avraham Seller: Efron Price: 400 NIS Floors: Two Date: 2,085 from creationFor any cave-related or other financial issues you require assistance with, please reach out at aharon@goldwaterfs.co.il.Good Shabbos.

Chayei Sara 5786 – Location, Location, Location

The Mishna (Avos 5:10) tells us there are four types of people. One who says what’s mine is mine and yours is yours, is an average person. Some say, this is the characteristic of Sedom. One who says, mine is yours and yours is mine, a simpleton. One who says, mine is yours and yours is yours is righteous and one who says yours is mine and mine is mine is wicked.The most striking of these four is the first. Somebody who is a private property absolutist. He believes that nobody has a right to his possessions and equally he does not ask for the possessions of the other. The two opinions in the Mishna paint completely opposed pictures of this attitude. The first opinion is that he is average, not generous perse, but nothing terrible. The second opinion is that this reflects the attitude of Sedom, a nasty inditement.The Maharal on the Mishna explains that the key lies in the underlying cause of this person’s views. A person can have two contractionary attitudes because he is not passionate in either extreme. For example, a person can eat very healthily yet does zero exercise. Such a person isn’t a contradiction, they just have an average view towards their health. So too a person can be not interested in other people’s money and simultaneously keep a closed fist protecting theirs. They are just average. Not particularly greedy and by equal measure not generous.However, the Maharal explains, you can have person who’s entire personally is self centered. Their only interest is their own personal wellbeing and success. Such a person can respect other’s rights, but only a means towards the end of them respecting their own rights. I can respect rule of law and not steal because I want to live in a low crime society.This attitude was what was reflected in Sedom. They withheld not just charity but also trade with outsiders for fear that they would deplete the natural resources available in Sedom. Sedom did not ask for charity from others, but you’d better not dare ask from them.Israel has a Capitalist economic system with a social welfare safety net. This is mirrored in most Western countries with broadly the same philosophy, but with differences in shades and applications. We respect individual property rights and view them as vital for maintaining the natural order and goodness of society. However, as the Mishna tells us, absolutism has a downside. We have to use our own material means and blessings to help others. One should not be stingy either out of apathy towards the needs of others nor as a tactic to enhance one’s own standing.Israel, like many countries encourages charitable donations through giving tax credits of 35% for donations made to recognized charities. Additionally, for those who like a Segulah, the Yerushalmi says that giving Tzedkah is a segulah for avoiding taxes.For any Tzedakah related or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il.Good Shabbos.

Torah & Taxes Blog

Vayeishev 5786 – Joseph and the Amazing Tax-Deductible Dr...

Vayishlach 5786 - Goldwater's Finances

Vayeitzei 5786 – Taxes and Taxis

Toldos 5786 – Yitzchak’s Accounts

Chayei Sara 5786 – Location, Location, Location

Vayeira 5786 – The Sedom Welfare System