Q: I have two small flats. First one I bought with the intention that I have a house to live on. Later I bought a second one and changed my intention to sell them both after some time to buy a house for me. Both are rented. I want to know.
1. How much zakat I have to pay now.
2. If I use the rent for my retirement money to live without work how do I have to pay zakat?
3. If I sell them and buy a house and start living in it and partly rent it to get money to survive in old age, how should I pay zakaat on it?
A:
1. If at the time of purchasing both flats you did not intend to sell them, then you will not have to pay zakaat on them. However you will pay zakaat on the rent you receive from the flat you have given out on rent.
2. If you collect the money you receive from the rent, then after deducting liabilities and debts if the wealth reaches nisaab, then you will have to pay zakaat on the money on your zakaat date.
3. In this case you will not have to pay zakaat on the house, however you will pay zakaat on the rent you receive.
And Allah Ta’ala (الله تعالى) knows best.
Answered by:
Mufti Zakaria Makada
Checked & Approved:
Mufti Ebrahim Salejee (Isipingo Beach)