Q. I bought land in Dubai. It was worth 5 million US dollars. The current value of it is 3 million US. Do I pay zakat on losses? Current value? Some say……..

Answers:

• If you have purchased the property for the purposes of it being an investment, then you would have to calculate zakat on the current value of the land. If it is 3 million, then the zakat payable would calculate for 3 million.
• If you have purchased the land for non-investment purposes, then you would not pay zakat on it.
• Should your intention change from non-investment to investment, then you would have to pay zakat on it. Likewise, should your intention change from investment to non-investment, then you not have to pay zakat on it
• You would not pay zakat on the 2 million dollar loss. (Zakat is on what you own, not what you do not not own!)

Allah Certainty Knows Best.

p.s. May Allah (SWT) give you and all others barakah in all your doings, Ameen.