Zakah on money placed in a land investment

Question : The questioner says: I have a sum of money in the bank, and I pay its zakah in Ramadan every year. Last year, in the month of Dhul-Qa'dah, I put a portion of it into a land investment, and the investment has not yet concluded. Is zakah due on it? May Allah reward you for us and for the Muslims.

Answer : Yes, if a person puts some of his money into a land investment for the purpose of trade and profit, the first lunar year does not reset; that is, the lunar year for this trade
is based on the lunar year of the money. For example, if he bought it in Dhul-Qa'dah, we do not say to wait for its zakah until the month of Dhul-Qa'dah comes, but rather we say to pay its zakah with the zakah of his wealth in Ramadan, even if the lunar year has not completed for the land, because trade goods are based on one another, and the first one is the standard. Otherwise, a man who is constantly moving his trade would not have to pay zakah, for example, because the lunar year does not complete on all his wealth, or on much of his wealth. The point is that this is something that a student of knowledge, and one who is not a student of knowledge, should pay attention to: the lunar year for trade goods is based on the original capital. For example, if I have money whose zakah is due in Ramadan, and in Sha'ban I buy a commodity for trade with this money, when do I pay zakah on this commodity? In Ramadan, meaning after one month, because trade goods, as I told you, have their lunar year based on the original capital. Yes, listen, but that is enough. And with this, this session ends, and until a future session, if Allah wills, on the night of Tuesday, and may Allah's peace, mercy, and blessings be upon you.