Ruling 1788 — The One-Fifth Tax (Khums)

If a person creates a garden with money on which he has paid khums or which is not liable for khums, and if he wants to sell it after its price appreciates, he must pay khums on the fruits, and on the growth of the trees and shrubs that were already growing or that he planted, and on the dry branches that can be pruned and used, and on the increase in the price of the garden. However, if his intention is to sell the fruit of the trees and to benefit from their value, then khums is not obligatory on the increase in price and the rest is liable for khums.