Khums on Land Bought for Housing Purposes
Q: If a mukallaf — using his yearly income — purchases a plot for housing purposes and after the khums year passes on it, he sells it to buy a residential house and other life requirements. Should he pay khums on the proceeds?
A: If he buys the plot with his yearly earnings for building a residential house on it but after the khums year passes he exchanges the very plot with a house or spends its proceeds on buying another house for living in, it is not subject to khums nor considered as new earnings. But, if its proceeds are spent on purchasing other life requirements, then it would be problematic to consider the said plot as ma’ūnah.
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