A person received a gift and used it as capital for trade. After a year, they still had some of the money as capital and some profits. Is khums due on this?
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1 Answer
Peace be upon you.
Ayatollah Khamenei (may Allah protect him):
There is no khums on the price of the gift, even if its value increases, unless it is used as capital (for sale). In this case, the increase in value after selling it and accounting for inflation is considered income for the year, and it is obligatory to pay khums if it remains unspent until the end of the khums year.
Conclusion: You must pay khums on the increase in value of the goods that remain with you, as well as on the profits from the goods you sold that were not spent on your expenses. As for the capital itself, khums is only due if it is in the form of goods and its value has increased.
Source: Educational Message - Khums - Khums on Profit (1) + Khums on Earnings (3) - Cases of Non-Expenditure
Ayatollah Sistani (may Allah protect him):
He must pay khums on the business capital as well as on the goods that remain with him and all the profits that he has not spent on his expenses.
Source: Minhaj al-Salihin - Vol. 1 - On the Categories of Increased Value Three - M 1217 + 1219
May you be successful in all good.