Taxation/ National insurance | Tax losses as a fulcrum for economic recovery

Losses for tax purposes may also serve as an underlying asset for leveraging a solution for financial trouble, which usually also includes losses of this type. A widower - leaseholder of a farm in a moshav - found herself owning a farm with production assets that did not yield an income and whose use was ostensibly prohibited, according to the nature of the rights pursuant to the possession of the farm.

The solution was creating a special business and legal structure that satisfied the instructions and rules by which the farm was possessed – a solution allowing for shutdown manufacturing assets to be used, while waiving the ordinary track tax advantages for those uses by taking advantage of those losses and raising appropriate finding. The result was that within a few years, the economic situation changed drastically, which changed afforded the widower economic well-being.