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,
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.