The Ruling on the Zakah of Real Estate Owned with the Intention of Selling
Machine translationRead the Arabic original
The questioner:
If a person buys a piece of land to build a house on it and then sells it, he owes zakah on what he intended to do with it.
The Shaykh:
No, there is no zakah on it. If he did not intend to sell it, there is no zakah on it. So if he sells it, he pays zakah on the money he has, which is the price, once a lunar year has passed over it.
The questioner:
If real estate has earned income and the person has not sold it after working in trade, but only after five years, he owes only one year’s worth due to the market slump.
The Shaykh:
No, a person who holds it with the intention of selling does not pay zakah, and a person who is in the state of selling has no zakah on it. No, if he is continuously offering it for sale and has the intention of selling.
If a person buys a piece of land to build a house on it and then sells it, he owes zakah on what he intended to do with it.
The Shaykh:
No, there is no zakah on it. If he did not intend to sell it, there is no zakah on it. So if he sells it, he pays zakah on the money he has, which is the price, once a lunar year has passed over it.
The questioner:
If real estate has earned income and the person has not sold it after working in trade, but only after five years, he owes only one year’s worth due to the market slump.
The Shaykh:
No, a person who holds it with the intention of selling does not pay zakah, and a person who is in the state of selling has no zakah on it. No, if he is continuously offering it for sale and has the intention of selling.
Source
أجزاء من موطأ مالك، باب زكاة أموال اليتامى والتجارة لهم فيها — islamhouse.com (10:44)
The Arabic text is a machine transcription of the audio recording.