Zakaat - Rules and modern issues

When will something be declared as trade goods?

The question is when will something, be it flats, land or some other thing be declared as a trade good?  Sometimes things are bought with the sole intention of selling them.  Sometimes, one makes the intention to sell later on and sometimes in spite of willingness to sell, that article is not sold.  In this regard, the Jurists have clarified that if at the time of purchase, there was an intention to sell that article, then that article will be classified as a trade good and its value will be included in calculation of Zakaat regardless of whether it is sale or lease, regardless of whether it is cash or kind

Similarly, if something is bought in lieu of trade goods then it will also be considered to be a trade good.  Similarly if something is something is given out for hire in lieu of trade goods, it will also be considered to be a trade good even though no specific intention for trade has been made.

As mentioned in Fatawa A’alamgiri, Vol. 1, Pg. No. 174.