burbylellen
New member
I know some variant of this question has been asked many a time and I have been reading related posts and browsing through blog posts all night; however, there are still some confusions that I need to clarify to accurately calculate my zakat.
As I understand, the conditions for zakat eligibility and "zakat-able" assets:
JZK
As I understand, the conditions for zakat eligibility and "zakat-able" assets:
- Meet the Nisab threshold - I do now and did a year ago.
- Zakat-able assets
- I have cash that I've held for a year - no confusion here
- I have some crypto that I've held for more than a year; hence, it is zakat-able. I've held it for almost six years and the value has appreciated; however, I have not made any transactions. Do I treat it as a long-term investment? (I plan to sell whenever it reaches $x which could be tomorrow or 10 years from now) and calculate 2.5% of (market value - book value) gains? Or the total market value of the holding right now?
- Mutual funds purchased in the last year and held for less than a lunar year - this is honestly where the real confusion lies. A few months ago, I moved the majority of my savings to MF investment. I see it as a long-term investment (Retirement fund and house purchase fund). Every paycheck I add more and purchase more units of the MF. The MF does pay dividends that are invested back into the fund (DRIP). The money is not locked in, as in I can access it whenever I need by just selling the MF units that I own at a price in the market at the time.
- Is my MF investment zakat-able? (held less than a year)
- Do I pay zakat on the dividend yields or the total market value of the holding?
- Would it be different if I had held the MF for more than a year?
- I've lent some money to a close family member, and at the time of borrowing they said they'd pay back as soon as they were able to - it hasn't been a year and honestly don't know when or if at all they'd pay back. Should I count this debt as accounts receivable and include it in my zakat-able assets?
JZK