He bought land to build on, live in part of it, and trade the rest
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The second question of Fatwa number ( 21024 )
Q2: A person bought land to build on it and live in part of it, and to rent out the remaining part or sell it for a price higher than what he paid for it, and to buy another piece of land. Is there zakah on this land?
And may Allah reward you with good.
A2: There is no zakah on land prepared for residence. As for land prepared for sale, there is zakah on it if a lunar year has passed and it is offered for sale, because it is from the goods of trade. It is valued at what it is worth when the lunar year is completed, and a quarter of a tenth is paid from its value at that time. However, if he intended it only for rental, or if he hesitated in his intention between renting and selling, there is no zakah on it during the period of hesitation until he resolves to prepare it for sale. And if he intended it for rental, there is no zakah on its principal, but rather the zakah is on the rent if it reaches the nisab and a lunar year has passed from the time of the contract. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q2: A person bought land to build on it and live in part of it, and to rent out the remaining part or sell it for a price higher than what he paid for it, and to buy another piece of land. Is there zakah on this land?
And may Allah reward you with good.
A2: There is no zakah on land prepared for residence. As for land prepared for sale, there is zakah on it if a lunar year has passed and it is offered for sale, because it is from the goods of trade. It is valued at what it is worth when the lunar year is completed, and a quarter of a tenth is paid from its value at that time. However, if he intended it only for rental, or if he hesitated in his intention between renting and selling, there is no zakah on it during the period of hesitation until he resolves to prepare it for sale. And if he intended it for rental, there is no zakah on its principal, but rather the zakah is on the rent if it reaches the nisab and a lunar year has passed from the time of the contract. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.