Facts: John Doe is the owner of a residential apartment that she purchased with funds she received as a gift from her mother. She now wants to transfer the apartment to her sister as a gift, with an exemption from capital gains tax under Section 62 of the Israeli Income Tax Law (ITA).Decision of the Israel Tax Authority: Under a 2013 amendment to Section 76 of the ITA, a transfer of real estate between siblings without consideration is exempt from capital gains tax only if the transferor received the property as a gift or inheritance from the parents of the siblings or from the parents of their parents.If the funds used to purchase the apartment, or at least 95% of them, came from a gift, and the transfer is made between siblings as a gift without consideration, the apartment will be treated as if it was received as a "gift in kind". In this case, the provisions of Section 62 of the ITA will apply to the transferred apartment, and it will be exempt from capital gains tax.It is important to note that the burden of proof that the apartment was purchased with funds received as a gift from parents or grandparents lies with the applicant (John Doe in this case).