Principle
Depreciation that is required (or can be required) reduces the purchase basis. When selling, capital gain is calculated from the cost after depreciation.
Example
Equipment purchased for NIS 100,000 and accumulated depreciation of NIS 60,000. Tax base: NIS 40,000. Sale for 70,000 NIS → profit 30,000 NIS.
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.