Fatwa #1403211 March 2006Pakistan
bought a golf course 15 years ago with an intention that the value would go up in the future, and would re-sell the golf course at a good profit. how to work out Zakaat
Question
A person bought a golf course 15 years ago with an intention that the value would go up in the future, and would re-sell the golf course at a good profit. However, in the meantime, for the past 15 years he has been receiving a minimum rent from the club that runs the golf club. How does he work out his zakaat? Does he work it on the yearly rental less the expenses or on the market value of the golf course every year.
Answer
Zakaat will not be payable on the actual golf course. The rentals will be added in the cash amount and the Zakaat will be calculated accordingly.
and Allah Ta'ala Knows Best
Mufti Ebrahim Desai