Zakat on Gold Calculator 2019 Usa
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Reviewed by Calculator Editorial Team
Zakat is an Islamic obligation requiring Muslims to donate a portion of their savings to those in need. For gold, the calculation involves determining the net worth of gold owned and applying the zakat rate. This calculator helps you determine the zakat amount on gold in the USA for 2019.
What is Zakat on Gold?
Zakat is one of the Five Pillars of Islam, and it applies to savings, wealth, and assets that exceed the nisab threshold. For gold, the nisab is 85 grams (2.98 ounces) or its equivalent in value. The zakat rate for gold is 2.5% of its net worth.
Key Points
- Zakat applies to gold that exceeds the nisab threshold
- The zakat rate for gold is 2.5%
- Zakat must be paid to qualified recipients
- Zakat is an annual obligation
The zakat on gold is calculated by determining the net worth of gold owned and then applying the 2.5% rate. The calculation must be done annually, and the zakat must be paid to eligible recipients.
How to Calculate Zakat on Gold
The zakat on gold is calculated using the following formula:
Zakat Formula
Zakat = (Net Worth of Gold × 2.5%)
Where:
- Net Worth of Gold = Current market value of gold - Cost basis of gold
- 2.5% is the zakat rate for gold
To calculate the zakat on gold:
- Determine the current market value of your gold
- Subtract the cost basis of your gold to find the net worth
- Multiply the net worth by 2.5% to find the zakat amount
If the net worth of your gold is below the nisab threshold (85 grams or its equivalent value), you are not required to pay zakat.
Example Calculation
Let's say you own 100 grams of gold with a current market value of $5,000 and you purchased it for $3,000. Here's how to calculate the zakat:
| Description | Value |
|---|---|
| Current market value of gold | $5,000 |
| Cost basis of gold | $3,000 |
| Net worth of gold | $2,000 |
| Zakat (2.5% of net worth) | $50 |
In this example, the zakat on gold is $50. This amount must be paid to eligible recipients as part of your zakat obligation.
Frequently Asked Questions
What is the nisab for gold?
The nisab for gold is 85 grams or its equivalent in value. If your gold is below this amount, you are not required to pay zakat.
How often is zakat on gold paid?
Zakat on gold is an annual obligation. You must calculate and pay zakat on your gold savings once each year.
Who can receive zakat on gold?
Zakat must be paid to eligible recipients as specified in Islamic law. This typically includes the poor, the needy, and those in debt.
Is zakat on gold tax deductible?
In the USA, zakat payments are generally not tax deductible as charitable donations. However, you may be able to claim a deduction for the fair market value of the gold you donate.