Chapter on Ruling of Trade Goods in Zakat

Muhammad ibn Yaqub, from Muhammad ibn Ismail, from al-Fadl ibn Shadhan, from Safwan, from Mansur ibn Hazim, from Abu al-Rabi al-Shami, from Abu Abdillah عليه السلام, peace be upon him: (Imam عليه السلام was asked) concerning ‘a man who bought goods, and his goods became unsold upon him, while he had already given zakat on his wealth before buying with it. Is zakat due upon him, or only when he sells it?’ Imam عليه السلام said: “If he kept it seeking an increase over the capital, then zakat is due.”

And from him, from Ali ibn Ibrahim, from his father, from Hammad ibn Isa, from Hariz, from Muhammad ibn Muslim, who said: I (narrator) asked Abu Abdillah عليه السلام, peace be upon him, about ‘a man who bought goods and they became unsold upon him, while he had given zakat on his wealth before buying the goods, when should he give zakat on them?’ Imam عليه السلام said: “If he kept his goods seeking thereby his capital, then there is no zakat upon him. But if he withheld them after he found his capital, then zakat is due upon him after he kept them beyond the capital.” He (narrator) said: “And I (narrator) asked Imam عليه السلام about ‘a man with whom wealth is placed, and he works with it.’” Imam عليه السلام said: “When a year passes over it, let him give zakat on it.”

And from him, from several of our companions, from Ahmad ibn Muhammad, from Ali ibn al-Hakam, from Ismail ibn Abd al-Khaliq, who said: Said al-Araj asked Imam عليه السلام while I was present, listening, and he said: “We press oil and clarified butter (al-samn) with us, seeking trade through it, and it may remain with us for a year or two years. Is there zakat upon it?” He (narrator) said, so Imam عليه السلام said: “If you profit anything in it, or you find your capital, then zakat is due upon you in it. But if you are only waiting with it because you find nothing except a loss, then there is no zakat upon you until it becomes gold or silver. Then when it becomes gold or silver, give zakat on it for the year in which you trade with it.”

Al-Husayn ibn Said narrated that from Safwan ibn Yahya, from Ishaq ibn Ammar, who said: I said to Imam عليه السلام: “A man buys a young female slave and keeps her with him so that she may increase in value, while he intends to sell her; is there zakat upon her price?” Imam عليه السلام said: “No, not until he sells her.” I (narrator) asked: “Then if he sells her, should he give zakat on her price?” Imam عليه السلام said: “No, not until a year passes over it while it is in his hand.”

Ali ibn al-Hasan ibn Faddal, from Sindi ibn Muhammad, from al-Ala, from Abu Abdillah عليه السلام, who said: I (narrator) said to Imam عليه السلام: “Goods by which I do not obtain my capital; ‘Is there zakat upon me in them?’” Imam عليه السلام said: “No.” I (narrator) asked: “I keep them for two years, then I sell them; ‘what is due upon me?’” Imam عليه السلام said: “One year.”

Ali ibn al-Hasan ibn Faddal, from Muhammad and Ahmad, from Ali ibn Yaqub al-Hashimi, from Marwan ibn Muslim, from Abdullah ibn Bukayr, Ubayd, and a group of our companions, who said: Abu Abdillah عليه السلام, peace be upon him, said: “There is no zakat in wealth that is being traded with.” So his son Ismail (ibn Ja’far) said to him: “O my father عليه السلام, may I be made your ransom, you have destroyed the poor among your companions.” Imam عليه السلام said: “O my son, it is a right which Allah سبحانه وتعالى intended to bring out, so it came out.”

Al-Husayn ibn Said, from al-Nadr ibn Suwayd, from Hisham ibn Salim, from Sulayman ibn Khalid, who said: Abu Abdillah عليه السلام, peace be upon him, was asked about ‘a man who had abundant wealth, so he bought goods with it. Then he placed them aside and said: ‘These are goods placed aside; when I wish, I will sell them, and my capital and more than it will return to me.’ Is charity due upon him in it while it is goods?’” Imam عليه السلام said: “No, not until he sells it.” He (narrator) asked: “Then must he pay on its behalf, if he sells it, for what has passed while it was goods?” Imam عليه السلام said: “No.”

Sa’ad ibn Abdullah, from Ahmad ibn Muhammad, from al-Husayn ibn Said, from Hammad ibn Isa, from Umar ibn Udhaynah, from Zurarah, who said: I was sitting with Abu Ja’far عليه السلام, peace be upon him, and there was no one with him except his son, Imam Ja’far (al-Sadiq). Imam al-Baqir عليه السلام said: “O Zurarah, indeed Abu Dharr, may Allah سبحانه وتعالى be pleased with him, and Uthman (ibn Affan) disputed during the time of the Messenger of Allah سبحانه وتعالى, may Allah سبحانه وتعالى bless him and his family. Uthman said: ‘Every wealth of gold or silver that is circulated, worked with, and traded with, zakat is due in it when a year passes over it.’ But Abu Dharr, may Allah سبحانه وتعالى be pleased with him, said: ‘As for that which is traded with, circulated, and worked with, there is no zakat in it. Zakat is only in it when it is buried treasure (rikaz) or a treasure placed aside; then when a year passes over it, zakat is due in it.’ So they disputed about that before the Messenger of Allah سبحانه وتعالى, may Allah سبحانه وتعالى bless him and his family.” He (Imam al-Baqir عليه السلام) said, “So Prophet صلى الله عليه وعلى آله وسلم said: ‘The (correct) statement is what Abu Dharr said.’” Then Abu Abdillah عليه السلام, peace be upon him, said to his father, Imam al-Baqir عليه السلام: “What do you intend by bringing out something like this, so that the people will refrain from giving to their poor and their needy?” So his father, Imam al-Baqir عليه السلام, peace be upon him, said: “Leave me to it; I find no way around it.”