I would like to know the best way to calculate zakat. There are many website that offers calculations based on income and assets you have. Please advise as I owned rental properties as well as other business I also have mortgage and other liabilities such as credit card bills ( for which I pay no interest ).
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In principle, after deducting one’s liabilities (see definition below), if one has Zakatable wealth equal to or more than the amount of Nisaab, then 2.5% of this amount must be paid in Zakah.
There is no Zakah on rental properties. Zakah is due on the market price of the business stock.
See the terminologies below:
Zakatable Assets: Gold, Silver, Cash, and business stock
Liabilities: Any outstanding (not future) debts that have not yet been paid for and are due within the next 12 months.
Nisaab: 612.36 grams of silver ($343 as of June 13, 2016)
And Allah Ta’āla Knows Best
(Mufti) Abdul Azeem bin Abdur Rahman
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