Is Zakat obligatory on a plot of land that was purchased with debt, knowing that the value of the debt exceeds the available liquidity?

If money reaches the nisab (minimum threshold) and a hawl (lunar year) passes over it, zakat becomes obligatory. However, if you owe a debt and do not have other surplus funds beyond your needs, it is permissible to deduct the amount of the debt from the zakatable money. What remains is then zakatable if it does not fall below the nisab; otherwise, there is no zakat, because debt prevents zakat on hidden wealth.

As for land, if it is for the purpose of ownership and not for trade, there is no zakat on it. But if it is for the purpose of trade, it is a trade asset on which zakat is obligatory based on its value if it reaches the nisab and a hawl passes over it, and the amount of debt is deducted from it when zakat becomes due on it.