Is zakat obligatory on a plot of land that has been held for a year, knowing that its sale would not cover the debts incurred from building a house?

The majority of scholars hold that debt exempts hidden wealth and trade goods from zakat (definition). If you own land for trade, and its value is insufficient to cover your debt at the time zakat becomes due, then no zakat is incumbent upon it, unless a portion of its price equivalent to the nisab (definition) remains after deducting the debts. If you have surplus funds not subject to zakat (such as personal belongings), assign them to cover the debt and then pay the zakat on the land if it is for trade. The nisab for banknotes is the equivalent of 85 grams of gold or 595 grams of silver, and the obligatory amount to be given is one-quarter of one-tenth (2.5%). If the intention was not to trade with the land at the time of purchase, then no zakat is due on it at all.