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6. The One-Fifth Tax (Khums)

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  • Ruling 1798

    If before paying khums a person purchases household furniture with the profit earned by him, it is not necessary for him to pay khums on the items if they are no longer needed after the year end. Similarly, …

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  • Ruling 1799

    If a person does not make any profit in a year, he cannot deduct his expenses for that year from the profit he makes in the following year.

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  • Ruling 1800

    If a person does not make any profit at the beginning of a year and spends out of his capital but then makes some profit before the year’s end, he can deduct the amount he had taken from …

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  • Ruling 1801

    If part of one’s capital is lost in business and similar activities, he can deduct the lost amount from the profit made in the same year.

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  • Ruling 1802

    If some property other than one’s capital is lost and he needs that item in the same year, he can acquire it during the year from his profit and it is not liable for khums.

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  • Ruling 1803

    If a person does not make a profit at the end of a year and borrows money in order to meet his living expenses, he cannot deduct the borrowed amount from the profit made by him in succeeding …

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  • Ruling 1804

    If a person borrows money in order to increase his wealth or to purchase something that he does not need, and if he repays the loan from the profit he acquires in that year without paying khums, he …

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  • Ruling 1805

    A person can pay the khums of an item that is liable for khums from the item itself, or he can pay the monetary value of the khums that has become obligatory. However, if he wants to give …

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  • Ruling 1806

    If a person’s property becomes liable for khums and a year has passed, he cannot have disposal over that property until he pays khums on it.

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  • Ruling 1807

    A person who owes khums cannot take responsibility for it – meaning that he cannot regard himself as being indebted to those entitled to receive it – yet still have disposal over his entire wealth. And in the …

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