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1. I have purchased my house through Guidance and still owe about $300K on this house. How should I treat this loan when I calculate my zakah. 2. How should I treat my retirement funds (to which both me and my employer contribute) but I cannot use this fund until I reach retirement age. Although if needed for an emergency I can withdraw that amount with penalty (but it is discouraged as it is for retirement). 3. We have saved some gold for our daughters who are 18 and 16 years old, how should that gold be treated for zakah if it meets nisab. 4. We have few plots in Pakistan which we bought for children's marriage and college expenses. Do we have to pay zakah on those. If we have to pay zakah then how should I pay for previous five years when I didn't pay zakah on those plots. Thanks

الجواب حامداومصليا
1- Technically it would be permissible for you to deduct the outstanding debt from your Zakah calculation but since this is a long term debt, thus you should not deduct it from Zakah calculation. It should be treated as no asset or liability. You should calculate your Zakah on the remaining assets that are in your possession including cash, gold, silver etc...
2- Zakah will become obligatory on your retirement fund once it reaches maturity. Once it reaches maturity then you would be required to give Zakah on the entire balance.
3- Since your daughters have passed the age of puberty, therefore if the gold and silver that is owned by your daughters reaches the minimum Nisaab then they would be required to give Zakah. If it does not reach the minimum Nisaab then no Zakah will be required.
4- If the land was purchased only for the purpose of sale then it would be treated as a business inventory, thus you would pay Zakah on its wholesale value. If it was purchased with any other intention then no Zakah will be necessary.
And Allah knows best.
Mufti Ikram ul Haq
Fatwa Center of America