Q&A: If someone sells his home with the intention of using that money to buy his new home, does he need to pay zakat on it?
Question: If someone sells his home with the intention of using that money to buy his new home – however, one year elapses, does he need to pay zakat for that money? This individual is still intending to use that money to buy his new home?
Answer: Bismillah.
When calculating one’s zakatable assets, all gold, silver and cash in its various forms must be included. The same applies to trade goods, namely, items purchased with the sole intention of resale. These forms of wealth are never exempted from zakat except in rare circumstances.
In the case in question, if a person has a large sum of money in hand due to having sold a home and they reach their zakat due date in such a state, they would need to include the entire sum in their zakatable assets. However, it isn’t necessary to pay the entire amount immediately, particularly if it will pose a hardship.
But in the case that a contract has been signed for a new home or the like, whereby the money for the cost of it is actually now due, then this would be considered a debt which may included in one’s liabilities and subsequently deducted.
And Allah knows best.
Tabraze Azam
Amman, Jordan.
11/03/2020
قال الحصكفيّ في الدرّ المختار: «(واللازم) مبتدأ (في مضروب كل) منهما (ومعموله ولوتبرا أوحليا مطلقا) مباح الاستعمال أو لا ولوللتجمل والنفقة؛ لأنهما خلقا أثمانا فيزكيهما كيف كانا (أو) في (عرض تجارة قيمته نصاب) الجملة صفة عرضو هو هنا ما ليس بنقد.» اهـ
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