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Post by newcomer on Jul 31, 2006 15:48:30 GMT
Assalam,
I have a number of houses which I have purchased as long-term investments, I receive rental income from these properties.
Currently, I pay zakat on the rental income that I have accrued throughout the year, is this correct? should I be paying zakat on the market value of these properties?
On a more general point what is the ruling for unrealised assets (assets which have a value but the profit/income is not realised until it is sold)?
I know that Gold is categorsied as a special case
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Post by Imam on Aug 19, 2006 18:02:50 GMT
Bismillahir Rahmanir Raheem Wa'alaykum 'Assalam wa Rahmatullahi wa BarakatuhuAll Praise be to Allah who is the Lord of the Worlds, and may Endless Blessings be showered upon His Most Beloved, and Final Messenger of Islam, Hadrat Muhammad Mustafa Salla Allahu ta'ala 'alayhi wa SallamJazak'allah for your question. With regard to paying zakat upon the market value of the property, then this only applies when the property is solely yours. If you have the deeds to the properties, and the properties are in your name, then you are liable to pay the zakat on them once they are sold. If however they are not yet yours, because you have some form of mortgage or loan, that you are paying off, at a limited period of time, then because the properties are not yet yours, however there will be no zakat on this. Yes, there will be zakat upon any property which recieves income in the form of rent, as it is not the property which shall be zakatable, but the income. As far as unrealised assets are concerned then as far as gold and silver are concerned then they are zakatable. Maybe a specification on what it is that is an unrealised asset, maybe an indication to whether it is zakatable or not, as a lot of assets which have value are only realised once they are sold. This means that anything that is sold, then the zakat will have to be paid once the value of that posession is kept for a period of a whole year. May Allah the Almighty give us all the tawfiq to pay our zakat when it is due, and to free us from the punishment of not making payments, when we should. Wallahu A'lamu BiththawaabM. Waseem Ashrafi
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