A limited-income employee often requires a significant amount of time to save enough money to build a suitable home for their family. If it takes more than a year to complete the house due to the long saving periods needed for construction expenses, what is the ruling regarding the funds spent on this construction? Is khums (a religious tax) applicable to these expenses or not? Please provide a detailed answer.
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1 Answer
Peace be upon you and God's mercy and blessings.
Ayatollah Khamenei (may God protect him):
In general, khums must be paid on profits when the khums year ends. However, if someone is about to spend their income on necessary expenses in the coming days, there is no khums due on that. Similarly, if a person cannot purchase their current needs, such as a house, in one go, or if securing future necessities is considered part of their current expenses according to social norms, they can allocate their income before the khums year ends to these needs, such as construction materials and land for the house. If they cannot purchase their current needs after paying khums, they may request an extension from the authority of khums or their representative to pay it in installments according to their ability over time and amount.
(1) The definition of 'near future' varies according to what is intended to be purchased; for example, for a mobile phone, it is four to five days, for a car, two to three weeks, and for a house, two to three months, which can be considered as a purchase likely to happen soon.
Source: Special Inquiry + Differences in Fatwas, 238.
Ayatollah Sistani (may God protect him):
Yes, if it is not spent on necessary expenses during the year.
If it is customary for someone in their situation to gradually acquire a home, and failing to do so would be considered neglectful of their family's future, then what they purchase each year for their needs is accounted for as necessary expenses for that year. This also applies to preparations for children's marriages over several years if neglecting this would be contrary to the dignity of the parents, especially if they are unable to provide for them in due time.
Source: Official Website + Office of His Eminence Sistani in Lebanon + Minhaj al-Salihin, Vol. 1, Issue 1228
May you be successful in all good.