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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 and uses the items before the end of his khums year, it is not necessary for him to pay khums on the items if they are …

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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 to meet his living expenses, he cannot deduct the borrowed amount from the profit made by him in future years and …

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  • Ruling 1804

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

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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 something else on …

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  • Ruling 1806

    If a person’s property becomes liable for khums and a year has passed, he does not 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. In the event …

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