The Hawl: Passing of One Lunar Year for Zakat Liability The passing of one lunar year is an oft cited condition of Zakah. Below how do we examine what this means, what it applies to, and some of the rulings that are related to it. I. The Threshold The obligation of Zakat on productive wealth […]
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Zakat on Rental Property: Income, Value, and the Question of Timing The question of what zakat obligation attaches to rental property is one of the more misunderstood areas of practical zakat calculation, owing less to genuine dispute over the underlying principle than to the principle being routinely stated without the reasoning that makes it workable.
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How We Calculate Zakat on Stocks Paying zakat on stocks is one of the most common sources of confusion in contemporary zakat practice — and one of the most consequential in dollar terms. Get the method wrong and you either overpay by a factor of three or underpay by ignoring the obligation entirely. This article
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Calculating Zakat on Startup Equity: The CRI Method and the Liquidity Event Parts 1 and 2 of this series addressed the permissibility of startup equity instruments and the conditions under which zakat is deferred before a liquidity event. This article addresses two remaining questions: how to calculate the base of assets liable for zakat when
Deducting Debt from Your Zakat Calculation: What Counts and What Doesn’t You may deduct certain debts from your zakat calculation, but not all debts qualify for deduction. The key distinction is between immediate liabilities that you must pay now and long-term obligations that extend into the future. Current debts with a human creditor who can
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Zakat on Cryptocurrency: Bitcoin, Ethereum, NFTs, and Digital Assets You pay zakat on cryptocurrency you hold, whether you characterize it as currency or as a digital asset. The rate is 2.5% of the full market value on your zakat date, calculated after the asset has been in your possession for one lunar year. This applies
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The Zakat Year: How Hawl Works and When Your Zakat Is Due The hawl (lunar year) is the temporal condition that governs when zakat becomes obligatory. Wealth that meets the nisab threshold does not become zakatable the moment it is acquired; it must remain in the owner’s possession for one complete lunar year before the
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Nisab: Your Complete FAQ Nisab is the threshold below which you owe nothing. Get it wrong or misunderstand how it works and you either overpay for years or excuse yourself from an obligation that actually applies to you. This article covers every common question about nisab in plain terms. What Is Nisab? Nisab is the
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How to Calculate Your Zakat: A Complete Step-by-Step Guide Zakat is assessed at 2.5% of surplus wealth held for one complete lunar year above the nisab threshold. The rate and the principle are simple. The practical difficulty lies in identifying which assets are zakatable, applying the correct methodology to each asset class, determining which debts
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Zakat on Retirement Accounts: A Complete Guide For many Muslim families in North America and beyond, the largest concentration of wealth sits inside a retirement account. Whether that balance counts for zakat — and how to calculate it if it does — depends on a single principle that the classical tradition is clear about. This
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