Fatwaa ID: 794
Question:
Assalmualikum, do I have to give zakah for the properties in my portfolio? I’ve receive monthly rent on these properties, so do they add to my business assets for zakah?
Also, if I am refurbishing a house which I intend to put out for rent or sell, then is there any zakah on it’s current market value or it’s estimated value (rental or sell) once the refurbishment is complete?
Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.
- Rental properties themselves are not subject to zakaah. Any rent earned from them will be treated like any other income. Thus, any received rent remaining in one’s ownership on one’s zakaah date will be subject to zakaah.
- If a property is purchased with the intention of resale, then it will be subject to zakaah. The current selling price will be considered.
And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
https://askthemufti.us/
وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين
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