Abdur Rahman ibn Yusuf Mangera – Simplified Zakat Guidance Zakatable vs Non Zakatable Assets
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The speakers discuss the importance of understanding how businesses are considered "core assets" and how properties are sold for a cash offer. They emphasize the value of businesses and how they can be sold to anyone without a business card or loan. The process of selling or buying a property can be complicated, and the value of properties is discussed as it is valuable and can be sold to anyone without a business card or loan. The speakers emphasize the importance of keeping properties in good condition for longer periods of time and offer advice on making the process easier.
AI: Summary ©
Bismillah AR Rahman AR Rahim, the issue I want to deal with in this
particular session is regarding how to determine if something is
for business. Because as we've discussed earlier, and as many of
you know that anything which is considered business inventory,
generally, when we talk about business inventory means that
you're doing like a proper business. And then these, this is
the stock that you hold, however, a person who's not doing a regular
business, but he has some assets for sale. Like, for example,
person's got a old car that he wants to sell, or he's got some
extra
extra furniture that he wants to sell, is that also called a
business asset? Because you're trying to sell it. So it because
business assets are going to be marketable, non business assets
are not the collateral. So what is it that makes an asset, a business
assets, and non business assets, even whether you're doing a
business or not. So if you're doing a business, then it's very
clear to determine that, however, when you're not doing a business,
and it's just something you're selling, once in a while, on
Gumtree spot, Craigslist or whatever, online somewhere, right?
Or to, you know, in a garage sale, or whatever. So now, if it all,
the secret of this, or the basis of this rather, is it all goes
back to how you acquired something? So let's just say that
I've got an old iPad, which I want to sell, now, is this now that I
want to sell it, or I've got a house, which I've moved to another
house, so I've got this house to sell? Do I have to pay zakat on
the value of that house? Right, even before I sell it? Because now
it's considered like a business? Good? So the trick to all of this
to understand this is, how did you acquire it in the first place?
What reason did you acquire that? So if I got this iPad to use write
for myself, if I got the phone to use for myself, which is what
generally happens if I bought the house for use of myself or for
rental, right, which is still a use, right? I didn't buy it to
resell, even though I had a side intention, that if I do get a good
price in the future, sometimes I don't mind sending it as well. But
I didn't bite to sell only, right? That's the difference between
using Did you buy something? Did you acquire it to sell, that's
your primary focus that said, I want to sell it, you know, I'm
getting this as a good rate, I'm gonna sell it. That's the reason.
If that is the case, you bought it to sell right from the beginning,
you bought it or you acquired it in the sense that you either
purchased it by giving money, or you got it like you got a
business. And somebody Oh, there's one of your one of your customers
owed you money, right? wholesale customer owes you money, and then
he couldn't pay you. So he says, Look, I sell ice cream, can I just
give you ice cream? So you're saying, Well, I'm not going to get
my money from him anyway, right? He's not going to pay me I might
as well take the ice cream from him, I may take these phones from
him, I may take these batteries from him, or whatever. I've got
this old guy saying, Can I afford this car? Company card? Can I just
give that to you to pay off my loan? So when you're getting that
your intention is I'm not going to keep this? I have no use for it.
I'm going to sell it. So again, you're acquiring with the
intention of resale, expressing resale. So that also becomes a
good likewise, if somebody is renting your house, right? And
they can't pay you? Are they renting your store and they can't
pay you? So they say, look, I've got all of this stock sitting
here, right? Why don't you just take that for the payment instead.
So when you take that payment, your intention, I'm not going to
use this for myself, I'm going to sell it, I'm going to turn it
around. So again, you've acquired whatever you've acquired for
resale. And generally, you do that in three ways. You either purchase
it, or you get it in lieu of a business debt, or you get it in
lieu of a rental debt. That's how you will otherwise anything else
that I've acquired before, right, I've got a really nice jacket, I
don't want to use it anymore. It's still brand new as an unwanted
gift, and I want to sell it, you will not pay the car. That's not
the car trouble until you sell it. And then that just goes into your
normal income that if on the day of your zakat calculation, you're
your anniversary, you have that money, right that's with
everything. So now, let's just say somebody's inherited a piece of
land duped and they don't want to use it, they want to sell it.
Now that wasn't inherited through business he just came through.
That's why there's going to be no zakat on there. It doesn't matter
it's a very valuable land, you inherited a building no zakat on
there. The only the so it's not as the cattle but asset. Now the day
you sell it, and you get the money and you retain whatever amount of
that money on your second date, then you will pay zakat on that
but otherwise you don't pay it on the value of that likewise. So
whether that's real estate or you got a lot of cars, right.
One thing I want to clarify is that if you're doing a car
business, we actually buying cars to sell. You may use them but your
main until you sell it you're just going to drive around with it. So
every new car you get to sell you also drive
Around, your main reason is that you're setting it, you know, you
find a customer today you're going to sell it, that means all of
those cars will be Zeca trouble at the value at their value, because
they are a business as their inventory, right. But if you got,
as I mentioned before in another session, that if you've got cars
which are renting out, then there's no regard on the value of
them, because you're not selling those cars, you're selling their
service, right? Likewise, any other object you've got. And so
let's just say that you've got a house which is on sale for one
year or two years, you don't want to live it in it, but you did not
buy to resell, you bought it for rental, then you decide you know
what, I need to set it up, I need the money. So then you started
selling it. Even though it's on the market for two, three years,
you're not using it, you're not renting and you're just waiting
for it to be sold. There is no zakat on the value of that until
you sell it. But if I had purchased that I got a good deal.
So I purchased it to resell because I buy and sell houses, or
I don't buy and sell houses but I bought this one, right the friend
was going to sell he had to leave he needed the money quickly. So I
purchased it, and then I'm going to sell it that's my objective of
doing so then I will pay zakat on that. So remember, if it's you
only pay zakat on the value of something if you purchased it for
resale directly even if then you use it a bit just but your main
objective is to sell it yes if you purchased it, to use it and maybe
to sell it if you get a good price in the future sometime then
there's no zakat on the until you actually pay and then only on the
retain income likewise now let's just say that you purchased the
house to sell and then it wasn't selling so you decide I'm going to
rent it out now that and then you're not going to sell it
anymore. No longer do you have to pay once you've changed that
intention you put it into another use no longer do you have to pay
zakat on the value of the house anymore. So hopefully I think I've
covered everything regarding that and hopefully that makes it easy
because this can be very confusing. Right and can a lot of
people can make mistakes about this. So hopefully we pay as I got
correct like that. Just like a lot here. A cinematic