The Ruling on Zakah in Buildings Prepared for Rental
Machine translationRead the Arabic original
Question:
His third question says: I own a house rented out to others for residence. When I assess the value of the house to pay the zakah due on it at the rate of one-quarter of a tenth, I find that the amount of obligatory zakah to be paid exceeds the rental income from this house.
Knowing that its rental income represents part of our daily living expenses, please inform us, may Allah reward you with good, about what is required to be done in such a case.
Answer:
If the house is prepared for rental, not for sale, then there is no zakah on it; rather, the zakah is on the rent. If a lunar year has passed over it, it is zakat-able according to the correct view. Some scholars said: it is zakat-able from the time it is received. But the correct view is that it is zakat-able when a lunar year has passed over it, and one-quarter of a tenth is paid out.
The presenter: It, or part of it, meaning.
The Shaykh: It, or part of it, if the remainder reaches the nisab, then one-quarter of a tenth is paid out from it, twenty-five from every thousand. This is the obligation. As for the house itself, there is no zakah on it if it is prepared for rental, or for residence; there is no zakah on it. But if it is prepared for sale, then there is zakah on it. Whenever a lunar year passes over it, its value is assessed and its owner pays zakah on it according to the value. For example, if it reaches a certain amount, he pays zakah on a million, and if it is less or more, he pays accordingly, one-quarter of a tenth. As long as it is prepared for rental, and they benefit from the rent and utilize it, there is no zakah on it; rather, the zakah is on the rent if it reaches the nisab and a lunar year has passed over it. Yes.
The presenter: And indeed, it appeared from the questioner’s question that he wanted to pay zakah on the value of the house as a whole.
The Shaykh: No, there is no zakah on it.
The presenter: Whereas he is supposed to pay zakah on what he obtains from the rent, and what remains after his expenses from it?
The Shaykh: The house itself has no zakah on it as long as it is prepared for rental, not for sale. And if he receives the rent when the contract is completed, and a full year has passed over the rent, he pays zakah on it if it remains, or on what remains of it. And if he has spent it on his needs before the completion of the year, then there is nothing due on it. Yes.
The presenter: May Allah bless you.
His third question says: I own a house rented out to others for residence. When I assess the value of the house to pay the zakah due on it at the rate of one-quarter of a tenth, I find that the amount of obligatory zakah to be paid exceeds the rental income from this house.
Knowing that its rental income represents part of our daily living expenses, please inform us, may Allah reward you with good, about what is required to be done in such a case.
Answer:
If the house is prepared for rental, not for sale, then there is no zakah on it; rather, the zakah is on the rent. If a lunar year has passed over it, it is zakat-able according to the correct view. Some scholars said: it is zakat-able from the time it is received. But the correct view is that it is zakat-able when a lunar year has passed over it, and one-quarter of a tenth is paid out.
The presenter: It, or part of it, meaning.
The Shaykh: It, or part of it, if the remainder reaches the nisab, then one-quarter of a tenth is paid out from it, twenty-five from every thousand. This is the obligation. As for the house itself, there is no zakah on it if it is prepared for rental, or for residence; there is no zakah on it. But if it is prepared for sale, then there is zakah on it. Whenever a lunar year passes over it, its value is assessed and its owner pays zakah on it according to the value. For example, if it reaches a certain amount, he pays zakah on a million, and if it is less or more, he pays accordingly, one-quarter of a tenth. As long as it is prepared for rental, and they benefit from the rent and utilize it, there is no zakah on it; rather, the zakah is on the rent if it reaches the nisab and a lunar year has passed over it. Yes.
The presenter: And indeed, it appeared from the questioner’s question that he wanted to pay zakah on the value of the house as a whole.
The Shaykh: No, there is no zakah on it.
The presenter: Whereas he is supposed to pay zakah on what he obtains from the rent, and what remains after his expenses from it?
The Shaykh: The house itself has no zakah on it as long as it is prepared for rental, not for sale. And if he receives the rent when the contract is completed, and a full year has passed over the rent, he pays zakah on it if it remains, or on what remains of it. And if he has spent it on his needs before the completion of the year, then there is nothing due on it. Yes.
The presenter: May Allah bless you.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.