What Should Be Deemed as a Trade Good When One is Giving Zakat?

Answered by Ustadh Tabraze Azam
Question: Salam,
I read your answers on zakat on trade goods and that if you intend other than a definite sale, such as rental or personal use, then land/property is not deemed as a zakatable trade good.
What is the definition of intention of ‘personal use’?
Answer: Wa alaikum assalam wa rahmatullahi wa barakatuh,
I pray that you are in the best of health and faith, insha’Allah.
A trade good refers to any non-monetary item purchased with the intention, at the time of purchase, of resale. [Khan, Ascent to Felicity, footnote: 540]
There must be a clear intention of resale at the time of purchase, otherwise it is not deemed to be a trade good. A mixed intention is not clear, nor is an intention to sell “if I get the right price.”
See also: Zakat on Land and Determining Market Value
And Allah alone gives success.
wassalam,
Tabraze Azam
Checked & Approved by Shaykh Faraz Rabbani.