How do we pay zakat on money obtained from selling inherited land, given the different dates of sale for each portion, the commingling of funds, the inability to separate them, spending from them, the unsettled accounts with the partner, and the fluctuating price of the goods?
Whoever inherits land and intends it for trade, or sells it with the intention of trade, is not obligated to pay on trade goods according to the majority of scholars. Rather, zakat is obligatory on its price if it reaches the (minimum threshold) and a hawl (lunar year) passes over it from the day of sale.
Thus, the price of the portion sold in 2009 is subject to zakat after one lunar year from the sale, and similarly the price of the portion sold in 2020, whether it remains as cash or is invested in commercial goods. As for what has been invested in items not intended for sale (like a shop or shelves), there is no zakat on it.
If the money is mixed and cannot be distinguished, then all of it is subject to zakat at the hawl of the first amount of money.
The method of zakat: Evaluate the goods prepared for sale at market price when the hawl passes, add cash liquidity and collectible debts, then disburse a quarter of a tenth (2.5%) of the total. If the value of the goods varies by quantity, an effort should be made to estimate the value.
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