Zakah on land sold at different times and at different prices
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Q: I present to you the fact that I own residential land with a partner. It was purchased more than twenty years ago for the purpose of trade, and parts of it have been sold at various times, from five years after its purchase until now, at varying prices according to the time—older sales at one price and current sales at a higher price. The value of the sold land has been distributed between my partner and me, first by first, according to the agreed shares, and we spend it on our necessary needs, such as maintenance, building housing, and marriage. It is known that all the sold plots had a known value at the time of sale, and the remaining plots are still offered for sale until now. We have not paid out any zakah from the time of purchase and the start of sales until now. My partner passed away last year, and his heirs have decided to liquidate and sell their share. My question is how the zakah is to be handled in the following: 1- The land sold at varying times at different prices: do I pay its zakah for each year, or only for one year, which is when it is sold?
2- How is the valuation of the remaining land offered for sale to be done for the purpose of paying zakah? 3- If the zakah is to be paid in money that is not currently available, is it valid to pay it in real estate, specifically plots from the same land? And how is it to be valued? 4- If paying zakah from the land is valid, is it permissible to donate the expropriated land for zakah to charitable works that benefit the poor and the needy and others, such as building a hospital or a school for the need of the town? 5- Is there zakah on the value of the land I sold long ago, if the lunar year (hawl) has not completed on that money, and how is the matter to be handled regarding my deceased partner? I hope you will kindly answer in detail on each issue.
A: A- Land purchased with the intention of trade is subject to zakah when the lunar year (hawl) is completed on the money it was bought with. The land is to be valued at what it is worth at the time zakah becomes obligatory in each year, and its zakah is to be paid. As for what was sold in past years and whose zakah was not paid at the proper time, it is obligatory to pay its zakah now based on the price at which it was sold. Zakah is not dropped under any circumstances. It is a debt owed to Allah the Exalted by the deceased, and it is obligatory for the heirs of the deceased to pay it from his estate to clear his conscience. B- The land currently offered for sale is to be valued each year at the end of the lunar year (hawl) at its market value, even if it remains for many years. Its zakah is to be paid at the rate of a quarter of a tenth, i.e., 2.5%.
C- It is preferable for a person to pay zakah from money if he has it available. If he does not have money available, it is permissible to pay zakah from the goods themselves, based on the price on the day the lunar year (hawl) is completed. This is because of the leniency shown to owners of wealth, for zakah is a means of support, and it is not fitting to burden owners of wealth with what is difficult for them. Rather, what is required of them is to support their poor brothers from what they have. It was narrated from the hadith of Samurah (may Allah be pleased with him), that he said:Bulugh al-Maram 4:25 . It was narrated by Abu Dawud . Based on this, if you wish to pay zakah from these lands, value them and pay from the lands an amount equal to a quarter of a tenth of their value, i.e., 2.5%, and distribute it to the eligible recipients of zakah if it is in a place where it can be utilized. D- The obligation in zakah is that it be paid to the eligible recipients, the poor and the needy, or any one of the eight categories mentioned in the noble verse, and they must own it so that they can dispose of it according to their need. As for building schools or hospitals with it, or the like, this does not suffice, because that does not fall within the eight categories of zakah expenditure specified in the saying of Allah the Exalted:
[At-Tawbah 9:60] . E- If the land has been sold and the lunar year (hawl) has not completed on the price for which it was bought, and the price for which it was sold has been consumed before the completion of the lunar year, then there is no zakah on it. It is known that the lunar year (hawl) of the price is the lunar year (hawl) of the original price of the land, and a new lunar year (hawl) is not started with it.
2- How is the valuation of the remaining land offered for sale to be done for the purpose of paying zakah? 3- If the zakah is to be paid in money that is not currently available, is it valid to pay it in real estate, specifically plots from the same land? And how is it to be valued? 4- If paying zakah from the land is valid, is it permissible to donate the expropriated land for zakah to charitable works that benefit the poor and the needy and others, such as building a hospital or a school for the need of the town? 5- Is there zakah on the value of the land I sold long ago, if the lunar year (hawl) has not completed on that money, and how is the matter to be handled regarding my deceased partner? I hope you will kindly answer in detail on each issue.
A: A- Land purchased with the intention of trade is subject to zakah when the lunar year (hawl) is completed on the money it was bought with. The land is to be valued at what it is worth at the time zakah becomes obligatory in each year, and its zakah is to be paid. As for what was sold in past years and whose zakah was not paid at the proper time, it is obligatory to pay its zakah now based on the price at which it was sold. Zakah is not dropped under any circumstances. It is a debt owed to Allah the Exalted by the deceased, and it is obligatory for the heirs of the deceased to pay it from his estate to clear his conscience. B- The land currently offered for sale is to be valued each year at the end of the lunar year (hawl) at its market value, even if it remains for many years. Its zakah is to be paid at the rate of a quarter of a tenth, i.e., 2.5%.
C- It is preferable for a person to pay zakah from money if he has it available. If he does not have money available, it is permissible to pay zakah from the goods themselves, based on the price on the day the lunar year (hawl) is completed. This is because of the leniency shown to owners of wealth, for zakah is a means of support, and it is not fitting to burden owners of wealth with what is difficult for them. Rather, what is required of them is to support their poor brothers from what they have. It was narrated from the hadith of Samurah (may Allah be pleased with him), that he said:
The Messenger of Allah (ﷺ) used to command us to pay Zakah from (the goods) we had prepared for sale.
كان رسول الله - صلى الله عليه وسلم - يأمرنا أن نخرج الصدقة من الذي نعده للبيعZakah expenditures are only for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler - an obligation [imposed] by Allah
إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّهِ وَاِبْنِ السَّبِيلِ فَرِيضَةً مِنَ اللَّهِ
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.