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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.

Vayeira 5786 – The Sedom Welfare System

The historic Jerusalem Old City, with its religious landmarks for Christians, Muslims and Jews

In 1948 the first Oleh was born. Avraham Avinu was born in Ur Kasdim nearly two millenia after the world was created. At age three he already was inquisitive enough to realise the nonsense of the paganism of his surroundings and seek out the true One G-d.However, it was only much later in life that Avraham started to move to Eretz Yisroel. There is a debate amongst the Rishonim as to how many journeys did Avraham make. The issue in chronology arises from a contradiction in the two Pesukim. In Parshas Lech Lecha (12:4) we are told Avraham left Charan aged 75. However, towards the end of Parshas Bo (12:41) the exile in Egypt is said to have been 430 years long. Rashi over in Parshas Bo explains, based on the limited generations that actually lived in Egypt, that is impossible to understand the 430 years as only referring to the actual Egyptian exile. He explains, based on Seder Olam, that the calculation must have started &nbsp;from the Prophecy of the exile, namely the Bris Bein Habesarim, which would have occurred 430 years before Yetzias Mirzayim. &nbsp;&nbsp;This breaks down to 30 years between Bris Bein Habsarim until the Birth of Yitzchak and then 400 year from the birth of Yitzchak until Yetzias Mitzrayim. We then know that Avraham was 100 when Yitzchak was born, then 30 years before that he would have been aged 70 at the Bris Bein Habesarim.How can it be that Avraham was already prophesizing about his descendants receiving the promised land and “returning here” (15:16) at aged 70 when he was only told to “GO” aged 75?Seder Olam says that he first Came to Eretz Yisroel aged 70, returned to Charan for 5 years, then returned to the holy land aged 75. It is unclear from the Seder Olam why he returned to Charan. The Ran suggests that it was to sort out all his assets and bring them with, as we see that the Pasuk in Lech Lecha (12:5) makes reference to Avraham bringing his family and “all their possessions which they amassed”.The Ramban (Shemos 12:40) explains alternatively that Avraham only came to Eretz Yisroel once. The 430 years are counted from the Bris Bein Hebesarim, however the 400 years is just a rounded number, not a reference to the birth of Yitzchak. Therefore, the Birth of Yitzchak could have occurred only five, ten or twenty years later. This would place Avraham between his 80s or 90s when receiving the prophecy, solving the need for a Second Aliyah.The main question remains. What would have been the tax implications of Avraham’s repeat relocations?According to the Ramban, it’s relatively simple. He would have become an Oleh Chadash aged 75. He would have benefited from having 10 years of tax free income from Charan.&nbsp;The complication arises according to Rashi. When Avraham came to Israel aged 70 did the 10 years start or would he be able to push off the trigger until aged 75? It would all depend on whether he became a “Toshav Yisrael” – “Israeli Resident” for tax purposes. The determination of Toshav Yisrael is an extremely complicated one, depending on days spent in Israel and various other factors which determine where a persons “center of life” is located. If he left all his assets and family in Charan there would be a strong case to be made that the 10 years would not have started unitl his second Aliyah aged 75.Important note to those considering Aliyah: hurry up. On 01/01/2026 new regulations kick in requiring reporting on Chutz La’aretz income even during the first ten years for anyone who makes Aliyah after that date. You still wont have to pay tax on that income, but you will have to disclose it to the authorities. And once they know, they know.For any Aliyah related or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il.Good Shabbos.

Lech Lecha 5786 – Avraham to Oleh Chadash

Noah's Ark floats on water in the middle of a flood 3d render

There are lots of things in this world which are good and lots which are bad. Some are painful but necessary for a greater good.&nbsp;Where do Taxes fall on this spectrum?The Torah commands all of humanity with seven universal Mitzvos. The שבעה מצות של בני נח are the basic framework of morality which the Torah demands from all human being.The Gemoro (Sanhedrin 56a) lists the seven Mitzvos, the first of which is דינין – laws. The Gemoro elaborates (ibid 56b) that the same way Jews must establish judges and courts in every town and city, so too gentiles must establish judges and courts in every town and city.&nbsp;There is a debate as to the purpose of these judges and subsequently the parameters of the Mitzva of דינין. The Rambam (Melachim 9:14) says that the judges are there only to judge the other six Mitzvos. The Ramban (Bereishis 34:13) expands the role of the Judges to have jurisdiction over all monetary matters. Anything from theft, to land law, to employment disputes are in the purview of these judges.The Ramban views having a civilized society of property rights and civil laws as a basic universal human need. As the Mishna (Avos 3:2) teaches us, pray for the peace of the government, for without the fear of them people would swallow each other alive.Rav Bartenura explains that the rule of nature is that the big takes advantage of the weak, the strong crush the poor. The Tiferes Yisrael notes the word “swallow” has the connotation of the abuser being uninhibited. Without fear of repercussions a criminal doesn’t have to chew over his decision, he can simply “swallow” the little man.Where do Taxes fall in?Putting aside the inbuild inevitability of any government’s propensity towards waste and corruption. The Torah does in principle believe in law and order. All humans are obligated to put together systems which ensure society functions and the vulnerable are looked after. Taxation to some level is a vital part of any such system.This approach most certainly isn’t a justification or support for any specific tax policy. These have always been subject to be major debate until this day in every country. Where should the burden fall? How much should we invest in to law and order? What other services should be publicly funded? For sure you’ll have two Jews and three opinions on any of the specifics.For any swallowing related or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il.Good Shabbos.

Noach 5786 - Taxes are so Good

Back to the beginning. What was the first ever tax? Who charged it, how much was it and how did people avoid it?The earliest archeologic records of taxation are traced back to the Mesopotamian kingdom of the Third Dynasty of Ur.&nbsp;They’ve found clay “documents” accounting for various tax payments and receipts signed by government clerks. Produce, livestock and slaves were taxed at various rates. There are even records of penalties for late payments.&nbsp;Evasion tactics were remarkably similar to those employed today. Underreporting income, hiding assets and good old bribery. There is record of a farmer excusing himself from tax payment because his goats died. &nbsp;Nothing has changed.There’s only one problem with this tax system. The archeologists claim is that this whole system happened during the 22nd Century BCE. According to the Chazal the world was under water for over a year exactly during that time. How do we reconcile the traditions of the Torah and archeologic evidence?Moreover, what can this teach us about the age-old question of the age of the Universe? An important axiom in this discussion is that evidence of age does not imply actual age. If one starts from the premise that God made the Universe one can ask a simple question. How old did the Universe look when it was created?The Gemoro in Chullin (60a) says that all creations were created “in their full size, consciousness and beauty.” (Translation following the Aruch.)Hashem didn’t create a world that “looked” brand new. The world which Hashem created was made fully populated with all forms of wild and plant life, roaring oceans, wild rainforests and boiling deserts. He created a world filled with evidence that it existed for billions of years.There is no logical argument that Hashem needs to make the world look only 5786 years old. Why wouldn’t Hashem throw in a few pieces of outdated paperwork to make us feel at home?For any goat related or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il.Good Shabbos.

Torah & Taxes Blog

Chayei Sara 5786 – Location, Location, Location

Vayeira 5786 – The Sedom Welfare System

Lech Lecha 5786 – Avraham to Oleh Chadash

Noach 5786 - Taxes are so Good

Bereishis 5786 - Tax and the Age of the Universe