Asalamu alaikom,

The question is, do I pay zakat on the full amount or total amount in the bank minus the debts owed? I bought an apartment for my son but only paid 50%. The other 50% is in monthly installments. My son does not live in this apartment. If I have the money to pay the remaining balance but choose not to because I need the money to live on for my daily expenses (my husband is dead), do I pay on the amount in the bank or amount in the bank minus the amount I still owe for the apartment? For example, the apartment cost 100,000. I paid 50,000 (3 years ago) and pay 1,000 monthly. I have 70,000 in the bank. Do I pay zakat on 70,000 OR 20,000 (70,000 minus 50,000)? Please provide the answer according to all mathahebs (Hanafi, Malaki, Shaf'i, Hanbali) Thank you.

If the outstanding installments are in your name, deduct all remaining installments and then pay zakat on the remaining sum if it reaches the nisab and is surplus to your basic needs and those of your dependents. The nisab is the [minimum] sum upon which zakat is due which is calculated at the market price of 85 grams of 21 carat gold.

However, if the installments are in your son’s name, calculate zakat on the full sum. It is permissible in this case to give your son from your zakat on wealth so he could be able to pay the due installments if he does not have enough money to settle the installments and does not have another apartment.