Is money earned from renting out a car that was purchased with ill-gotten gains considered permissible or impermissible, and does the ruling change if a portion of it is given in charity?
If someone acquires ill-gotten wealth, and it was obtained through an unlawful exchange (such as an unlawful wage for a prohibited act or an unlawful sale), then part of their repentance is to donate it as charity. If they are in need, they may benefit from it, and it is recommended that they donate an amount equivalent to the illicit wealth. However, if the money was taken through theft or usurpation, it must be returned to its owner. Jurists have differed regarding the return of profit generated from this money: Hanbalis believe that the profit must also be returned. Malikis and Shafi'is hold that the profit belongs to the usurper, while Abu Hanifa's view is to donate the profit as charity. Ibn Taymiyyah chose the opinion that the usurper takes a share of the profit commensurate with their effort, as if they were a mudarib (profit-sharing partner), and returns the remainder to the owner.
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