How to calculate the zakah on land prepared for trade for past years
Machine translationRead the Arabic original
The questioner:
And I am asking. The other question, as it came to us, is: I bought a piece of land for five thousand riyals ten years ago, and now it is worth five hundred thousand riyals. Do I pay its zakah based on the old value, or based on the current value?
The Shaykh:
All right.
The questioner:
I bought a piece of land for five thousand riyals ten years ago, and now its value is five hundred thousand riyals. Do I pay its zakah based on the old value, or based on the current value?
The Shaykh:
If you bought the land with the intention of trading and selling, you pay its zakah for each year according to its value, not the initial value and not the final value, but each year according to its value. If the first year it was worth only five thousand, you pay zakah on five thousand. Then the second year likewise, and the third likewise, and so on according to the value. If it increased in the first or second year to ten thousand, to twenty thousand, to forty thousand, to one hundred thousand, you pay zakah on it, each year according to its value. And for the last year, you pay zakah on five hundred thousand, because you sold it for five hundred thousand, so you pay zakah on five hundred thousand. And for the year before that, each year according to its value, by consulting with people of expertise between you and them, so that you know the value for each year and pay its zakah accordingly.
The questioner:
The question of the second brother. If it was not for trade.
The Shaykh:
If it is out of caution, there is nothing in it. If he bought it to make it a residence, to give it as a residence, or to rent it out, or something similar, then there is no zakah in it. Yes.
The questioner:
The first one was without trade, then I saw that there was a benefit in selling it, so I sold it.
The Shaykh:
If he bought it for other than trade, there is no zakah in it, except if he intended it for trade after a while. After the intention, the lunar year begins. If the year is completed after the intention for trade, [he pays] zakah.
And I am asking. The other question, as it came to us, is: I bought a piece of land for five thousand riyals ten years ago, and now it is worth five hundred thousand riyals. Do I pay its zakah based on the old value, or based on the current value?
The Shaykh:
All right.
The questioner:
I bought a piece of land for five thousand riyals ten years ago, and now its value is five hundred thousand riyals. Do I pay its zakah based on the old value, or based on the current value?
The Shaykh:
If you bought the land with the intention of trading and selling, you pay its zakah for each year according to its value, not the initial value and not the final value, but each year according to its value. If the first year it was worth only five thousand, you pay zakah on five thousand. Then the second year likewise, and the third likewise, and so on according to the value. If it increased in the first or second year to ten thousand, to twenty thousand, to forty thousand, to one hundred thousand, you pay zakah on it, each year according to its value. And for the last year, you pay zakah on five hundred thousand, because you sold it for five hundred thousand, so you pay zakah on five hundred thousand. And for the year before that, each year according to its value, by consulting with people of expertise between you and them, so that you know the value for each year and pay its zakah accordingly.
The questioner:
The question of the second brother. If it was not for trade.
The Shaykh:
If it is out of caution, there is nothing in it. If he bought it to make it a residence, to give it as a residence, or to rent it out, or something similar, then there is no zakah in it. Yes.
The questioner:
The first one was without trade, then I saw that there was a benefit in selling it, so I sold it.
The Shaykh:
If he bought it for other than trade, there is no zakah in it, except if he intended it for trade after a while. After the intention, the lunar year begins. If the year is completed after the intention for trade, [he pays] zakah.
Source
قناة «فضيلة الشيخ ابن باز Alsheikh Binbaz»، كيفية زكاة الأرض المعدة للتجارة عن سنين ماضية - بن باز - مشروع كبار العلماء — youtube.com
The Arabic text is a machine transcription of the audio recording.