Khums: Can a Loan Used to Buy Land Be Exempted from Khums on Year-End Income?

Practical Laws of Islam as per the teachings of Imam Khamenei

Khums: Can a Loan Used to Buy Land Be Exempted from Khums on Year-End Income?

English:

Question #873:

Last year I borrowed some money with which I bought land, anticipating that its value would increase and planning to sell it along with my present house to be able to solve my housing problem in the future. Now, at the end of my khums year, can I exclude that loan from the last year’s income to which khums is applicable?

Answer #873:

On the assumption that the money borrowed is used to buy land with the intent of selling it in the future, the borrowed sum is not subtracted from the annual income of the year in which it is borrowed. The entire amount of the yearly income after deducting living expenses is liable to khums.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Khums