Is zakat obligatory on money from selling real estate to pay off a debt, knowing that the entire amount is designated for debt repayment?
If the real estate is a trade commodity, bought with the intention of trade, and a year has passed while it is in your possession, then zakat is obligatory upon it by assessing its value and giving out one-quarter of one-tenth of its value, with a difference of opinion regarding the deduction of debt from the zakatable wealth. However, if the real estate is not a trade commodity, or a year has not passed on it, then no zakat is due on you.
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- Ftawy
- Original fatwa ID
- 110052
- Imported
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- Source text, unreviewed
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