Question:
Hi, I had a question regarding Masser on investment withdrawals. Here is the question:
1. Earn $1000 and pay $100 to Maaser.
2. Invest $900
3. After a number of years, the $900 has grown to $1,400.
4. Take a withdrawal of $200, faced with 2 options.
Option #1 being the investable gain is $600 – I now owe 10% on the first $600. I would pay Maaser of $20 ($200*.1 =$20).
Option #2, view the investment as one entity – the $200 withdrawal is a percentage of the entire investment consisting of 900 of principal and $600 of gain. With a $200 withdrawal, 64% is principal and 43% is gain. The Maaser on the gain portion would be $8.50 ($200*42%*10%).
Please let me know which route is preferable and why. Much appreciated,
Answer:
The obligation to give maser is not specifically when you with draw the money from the bank, rather when you earn it. There for since you had a $600 gain, you owe $60 to maser. You can give it at the beginning when you withdraw the first $200, or wait with it and give part now, and part later. Therefore, it wouldn’t matter whether you calculate the $200 as “profit” or “principle” that amount of money owed to maser will stay the same.
Best Wishes
