Blog

Chanukah was not only a struggle for simple religious freedom; it was also a revolt against financial desecration.

Chanukah was not only a struggle for simple religious freedom; it was also a revolt against financial desecration. The Greek-Seleucid oppression before Chanukah is usually remembered for forced Hellenization: bans on Torah observance, desecration of the Temple, and attempts to erase Jewish identity. But there was another, less discussed dimension of the tyranny: economic persecution used as a religious weapon. This was not ordinary imperial taxation. The Seleucid regime treat

Dec 23, 20251 min read

Many people in Israel, especially US expats, say the past year felt financially brutal. There’s a clear reason, and official statistics don’t fully capture it.

Many people in Israel, especially US expats, say the past year felt financially brutal. There’s a clear reason, and official statistics don’t fully capture it. If the currency of your income is not indexed to the shekel, your buying power can quietly shrink even if your salary never changes. For USD earners in Israel, two things happened at once in 2025: • Local prices officially rose about 3%, in a year which was widely regarded as having high inflation across the board, fu

Dec 23, 20252 min read

For the last few years, we’ve all seen the TikTok and Instagram “tax hack” videos:

For the last few years, we’ve all seen the TikTok and Instagram “tax hack” videos: “Write off your whole life” “Turn your vacation into a deduction” “Pay no self-employment tax with this one trick!” Most of these came from well-meaning but clueless young influencers who didn’t understand the Internal Revenue Code or even basic tax principles. Bad advice, but easy to spot. But something has changed, and it’s far more dangerous. We’re now seeing licensed CPAs and EAs posting t

Dec 23, 20252 min read

Many people are confused about the recent IRS disaster relief for taxpayers living in Israel. It is important to understand what this relief is and what it is not.

Many people are confused about the recent IRS disaster relief for taxpayers living in Israel. It is important to understand what this relief is and what it is not. The IRS extended filing and payment deadlines for taxpayers in Israel under IRC 7508A. This provision allows the Treasury Department to postpone deadlines for individuals affected by a terrorist attack or military action. It is a narrow category of relief and only affects deadlines. This is completely different fro

Dec 23, 20251 min read

One of the Most Abused Tax Strategies: Hiring Your Children

One of the Most Abused Tax Strategies: Hiring Your Children You have probably heard this one: "Just [theoretically] hire your kids and pay each one $15,000. They will owe no tax and you get a big business deduction. Plus no FICA taxes, either, for both of you." Most people think this works in real life. In reality it is almost entirely theoretical. Many believe they can simply claim the deduction without actual work, without actual payment, and without documentation. The IRS

Dec 23, 20252 min read

This week someone asked me to file their 2021 US tax return to claim a refund, believing the Israel disaster extensions also extended the deadline to claim refunds.

This week someone asked me to file their 2021 US tax return to claim a refund, believing the Israel disaster extensions also extended the deadline to claim refunds. They didn’t. This misunderstanding is extremely common. Here’s the rule in plain English: Disaster relief extends your time to file and your time to pay, however: It does not extend your time to claim a refund. Refund claims follow a strict 3-year statute of limitations based on the original due date of the return

Dec 23, 20251 min read

One of the most overlooked tax-planning opportunities for U.S. expats is what happens when a U.S. citizen and a non-U.S. spouse jointly own foreign real estate.

One of the most overlooked tax-planning opportunities for U.S. expats is what happens when a U.S. citizen and a non-U.S. spouse jointly own foreign real estate. Here’s a scenario I see often: A couple owns an investment apartment abroad 50/50. One spouse is a U.S. citizen; the other is a true nonresident alien (NRA). They want to sell the property. From the U.S. side: The U.S. spouse is taxed on worldwide capital gains. The NRA spouse is not taxed by the U.S. on foreign real

Dec 23, 20252 min read

Many US citizens who are Israel-based freelancers and work for both U.S. and Israeli clients hear about an Israeli tax strategy that classifies U.S. client income as foreign source.

Many US citizens who are Israel-based freelancers and work for both U.S. and Israeli clients hear about an Israeli tax strategy that classifies U.S. client income as foreign source. The goal is to stay in Osek Patur status and avoid having to charge Ma'am for Israeli resident clients (Israeli 18% VAT) on the first 120,000 ILS of Israeli revenue. This strategy can save about $6,660 USD (21,600 ILS) per year. However, it only makes financial sense at lower income levels. The s

Dec 23, 20251 min read

Big win here! A taxpayer who lives in NJ was very late with filing his 2023 tax return, and asked me to prepare his tax return so that he can utilize the disaster extension for Israel.

Big win here! A taxpayer who lives in NJ was very late with filing his 2023 tax return, and asked me to prepare his tax return so that he can utilize the disaster extension for Israel. Since this disaster extension includes if the accountant resides in Israel, even if the taxpayer is not, this was smart planning on his side - and completely legal. His tax bill went down from $55,473 owed to $14,916 owed (a savings of $40,557), using the Israel disaster extension. An importa

Dec 23, 20251 min read