Zakah on Commercial Lands
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Q1: I have a sum of money with the intention of investing, and I buy lands and sell them. Please note that a lunar year (hawl) does not pass from the date of purchase, and the cash does not remain for a lunar year either. For example: I bought a piece of land, and after four months it was put up for sale, and after three months it was sold; meaning that from the purchase of the land until it was sold, the duration was seven months, and it turned into liquid cash. Please note that my intention is to invest through buying and selling. So, is zakah due on me in this case, and is it obligatory on the cash and the land?
A1: Zakah is obligatory on commercial lands if a lunar year (hawl) has passed on the capital with which they were purchased. They are valued at the time zakah becomes due, and zakah is paid at the rate of one-quarter of one-tenth of the estimated value. The transfer of money from being trade goods to being cash, or the reverse, does not break the lunar year (hawl).
Q2: I have a real estate investment share, and its duration was two years. Is zakah obligatory on me from the time it was put up for sale, or from the time of my participation in the investment?
A2: Zakah is obligatory on commercial real estate investment shares if a lunar year (hawl) has passed on the price for which they were purchased. Their value is estimated at the end of the lunar year, and one-quarter of one-tenth of their estimated value is paid out.
A1: Zakah is obligatory on commercial lands if a lunar year (hawl) has passed on the capital with which they were purchased. They are valued at the time zakah becomes due, and zakah is paid at the rate of one-quarter of one-tenth of the estimated value. The transfer of money from being trade goods to being cash, or the reverse, does not break the lunar year (hawl).
Q2: I have a real estate investment share, and its duration was two years. Is zakah obligatory on me from the time it was put up for sale, or from the time of my participation in the investment?
A2: Zakah is obligatory on commercial real estate investment shares if a lunar year (hawl) has passed on the price for which they were purchased. Their value is estimated at the end of the lunar year, and one-quarter of one-tenth of their estimated value is paid out.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.