Zakat on rental property and 401K

[jdsnyd]

RENTAL PROPERTY

So I recently joined a partnership to acquire a rental property. Let’s say I had 10k cash but put in 5k into this rental property, so now I have 5k. Would I pay Zakat on the 10k or pay on the 5k then pay 10% zakat on the rental income. (I do not have a home but rather I rent)

401K

So it is my understanding that we should not pay zakat on 401K and rather wait until we withdraw the money then pay 2.5% of the amount we withdraw. Would like to get your opinion on this.

 

[sbmor777]

@jdsnyd For rental properties, you don't pay zakat on the value of the property. Rather you will pay zakat on the income from rent.

https://www.islamicfinanceguru.com/articles/calculate-zakat-on-property-btl-and-family-home

For 401k, there are a few opinions on what to do. One is that you don't have to pay zakat on it and will pay in retirement once you have full access to it. Another opinion is you should pay on the amount you could cash out less penalties and taxes.

https://www.zakat.org/is-zakat-owed-on-401k-plans-and-individual-retirement-accounts-ira