1799. If a person does not make a profit in a year, it will not be permissible for him to deduct the expenses incurred in that year from the profit acquired in the subsequent year.
1800. If a person does not make any profit in the beginning of a year, and uses a part of his capital to meet the expenses incurred at the time, then should he make a profit by the end of that year, he cannot not deduct the amount he used from his capital from the profit he acquired.
1801. If a person incurs a loss on a part of his capital in an business or similar scheme, he may deduct the loss from profit he acquired prior to incurring the loss.
1802. If a person suffers a loss on property other than his capital, he may not use the profit he acquires to compensate for the loss, unless he requires the property he has lost within the same year; in this case, he may use the profit acquired that year to compensate for it.
1803. If a person incurs a loan in the beginning of the year in order to meet his expenses, but acquires some profit prior to the end of the year, he cannot deduct the amount of the loan from the profit he has acquired, except in the event he took the loan after he acquired the profit. However, he may deduct the loan from the profits acquired during the year (not at its end).
1804. If a person is unable to procure a profit throughout a year, and incurs a loan in order to meet his expenses, he cannot deduct the amount of the loan from the profit he acquires in the subsequent years. However, he may repay the loan from that profit.
1805. If a person incurs a loan in order to increase his wealth, or purchase property that he does not require, he cannot deduct the amount of the loan from the profit he acquires. However, if the amount that he loans is lost, or the item that he buys with perishes, he may pay off the loan from the profits of that year.
1806. A person has the option to pay the khums of an item from the item itself, or pay its value in the common currency. Obligatory precaution dictates that he should not pay the khums of an item with another item without obtaining the permission of the ÎÁkim al-shar’.
1807. If a person’s wealth is subject to khums, and a year has passed, he may not utilize that wealth until he pays its khums, even if he intends to pay its khums, unless he obtains the permission of the ÎÁkim al-shar‘. However, there is no problem in exercising conventional disposal over one’s share by selling it or making it a part of a compromise settlement.
1808. A person who owes khums cannot take it into his dhimmah, meaning he cannot deem himself indebted the khums owners and he cannot utilize the wealth in the manner elaborated in the aforementioned article. If he utilizes the wealth, and he loses it, he will be liable to pay its khums.
1809. If a person who has a debt of khums makes a compromise settlement with the ÎÁkim al-shar’ and takes responsibility for it, he may then utilize the wealth. Furthermore, whatever profit he acquires from that after the settlement will belong to him.
1810. If a person who is in a partnership pays the khums that is obligatory on him, but his partner fails to do so, then should his partner reinvest the wealth on which he owes khums in the following year, neither of the two will be permitted to utilize that wealth. However, if the partner who has not paid khums does not believe in the precept of khums, it will be permissible for the other partner to utilize the wealth.
1811. If a non-bÁligh child has some capital and he acquires some profit from it, he will be liable to pay its khums. It will be obligatory on his guardian to disburse the khums. If the guardian fails to do so, the child must do it when he becomes bÁligh.
1812. If a person who has obtained wealth from somebody is certain that the person did not pay the khums owed on it, it will not be permissible for him to utilize it unless that person does not believe in the precepts of khums. The same will apply, based on obligatory precaution, if he doubts whether he has disbursed its khums or not.
1813. If a person uses his income (profits of earnings) to purchase a real estate that is not considered a part of his yearly expenditure during his financial year, he should pay its khums at the end of his financial year. In the event that he fails to pay its khums and its value appreciates, he should pay khums on the current value of the property. The same applies to items other than real estate, such as rugs or things similar.
1814. If a person buys – for example - some real estate using money whose khums has not been paid, and the property appreciates in value, then if he had not intended to buy the property as an investment, to be sold once it appreciates in value, such as buying it for the purpose of agriculture, given that he bought the property on credit and paid its price from the money whose khums has not been paid, he must pays the khums (one fifth) of the value that he bought it for.
However if he gives the money whose khums has not been paid, and says to the seller that he is buying the property with this money, then in the event that the ÎÁkim al-shar‘permits the transaction of one fifth of it, the buyer must pay the khums (one fifth) of the current value of the property.
1815. If a person who has not paid khums from the day he became a duty-bound Muslim, purchases an item which he does not require, from the profits of his trade, and one year has passed from the time he acquired the profit, he should pay its khums. However, if he purchases items he needs, such as household furniture, and they concur with his status, then if he knows that he purchased them during the year in which he acquired the profit, he will not have to pay khums on them. If however he does not know whether he purchased them during the year, or after it, obligatory precaution will dictate that he comes to a settlement with the ÎÁkim al-shar’.
