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

Tags: calculating maaser

Share The Knowledge

Not what you're looking for? Browse other questions tagged Tzdakah and maaser calculating maaser or ask your own question.

Leave a Reply

Your email address will not be published. Required fields are marked *