Must I Pay Zakat on Assets That I Acquired at the End of the Year?

Answered by Shaykh Abdul-Rahim Reasat

Question

We calculate our Zakat on the 10th fast of Ramadan every year. This year, we sold a small rental property just a little over a month before that date and acquired a balance from that sale, so one lunar year has not passed on this money. Do we still have to pay Zakat on it or wait till a year from acquiring that money and then pay Zakat on it?

Answer

I pray you are well.

You must include this amount into the Zakat calculation and pay 2.5% of it as Zakat if you are over nisab. Not having had this particular amount for over a year is of no consequence.

Zakat is Paid by the Wealthy

Zakat is due on anyone who is considered wealthy by the Shari’a. In general, this is someone who has at least 100 grams of gold or its monetary equivalent in excess of their immediate needs – although there is more detail to this point. This amount is known as the nisab.

Once someone has this amount, they are wealthy, and should technically pay Zakat on it, but the Shari’a has allowed the passage of a year to facilitate ease and the opportunity for investment and growth. Once a year passes one must then pay 2.5% of all of one’s assets as Zakat – provided that one didn’t lose all of their excess wealth during the year.

Therefore, having a certain amount of wealth for an entire year is not of consequence. Only having at least the equivalent of nisab at the beginning and the end of the year, without it all in between, is. [Mawsili, al-Ikhtiyar]

Charity Does Not Decrease Wealth

The Prophet (Allah bless him and give him peace), who saw and knew more than any of us can, said, “No charity ever decreased wealth.” [Muslim]

Meaning that any charity that is given will end up returning to the giver. Allah replaces it, saves the reward of that charity, and increases it until the Day of Judgement.

Whatever you give – you’ll see it forever as a tremendous reward. I urge you to consider giving to the Islamic Scholars Fund to maximize this reward,

May Allah grant you the best of both worlds.
[Shaykh] Abdul-Rahim
Checked and Approved by Shaykh Faraz Rabbani

Shaykh Abdul-Rahim Reasat began his studies in Arabic Grammar and Morphology in 2005. After graduating with a degree in English and History, he moved to Damascus in 2007, where, for 18 months, he studied with many erudite scholars. In late 2008, he moved to Amman, Jordan, where he continued his studies for the next six years in Sacred Law (fiqh), legal theory (Usul al-fiqh), theology, hadith methodology, hadith commentary, and Logic. He was also given licenses of mastery in the science of Quranic recital, and he was able to study an extensive curriculum of Quranic sciences, tafsir, Arabic grammar, and Arabic eloquence.