Khums: Khums on Additional Apartments from Redevelopment Deals

Practical Laws of Islam as per the teachings of Imam Khamenei

Khums: Khums on Additional Apartments from Redevelopment Deals

English:

Question #963:

If a person gives his dilapidated house to a constructor who builds several apartments on the land and gives the original owner some of them in return, what is the ruling regarding the khums on the additional apartments?

Answer #963:

There are several cases for this issue:

i. If he does that for business purposes (i.e. selling the additional apartments to make money), in case that there exists a buyer for these apartments, the appreciation, after subtracting the inflation, is subject to khums.

ii. If the apartments he receives are needed by him and compatible with his station, they are not subject to khums.

iii. If he has no business purpose but wants to rent them out and make money from renting, they are not liable to khums until they are sold. When he sells them, the appreciation - after subtracting the original price and the inflation - is ruled as the income of the sale year.

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