Zakat on Dead, Damaged or Unsold Stock

Short answer: Zakat is payable on trade inventory at its current fair selling value on the zakat anniversary. Completely unsaleable, damaged, or expired stock with no market value is excluded from zakat. Stock that is unsold but still marketable (even at a reduced price) is valued at its realisable sale price. Details: Trade goods are assets held for resale. Zakat must be paid on their value each lunar year. The valuation is based on the price one could realistically obtain on the day zakat is due, not the purchase cost. If goods have become wholly spoiled or worthless (e.g., expired, damaged beyond repair, no buyer), they have no zakat value. This is because zakat is only due on usable wealth; paying zakat on worthless items would be akin to giving bad property, which Allah forbids in Qur'an 2:267. Similarly, stock that has been unsold for years but still has some value (e.g., old models sold at discount) is valued at that lower realisable price. Goods held for personal use or as capital assets (not for trade) are not subject to zakat unless they are gold/silver or cash. Evidence: 1. Shaykh al-Uthaymin: zakat on trade goods is assessed at the fair selling price on zakat day; wholly spoiled/unsaleable goods worth nothing carry no zakat. (P1) 2. Allah says: "Spend of the good things... and do not aim at that which is bad to spend from it, (though) you would not accept it save if you close your eyes and tolerate therein." (Qur'an 2:267) – this indicates that zakat should only be given from valuable, good property; damaged worthless goods cannot fulfill the obligation. (P2) 3. General hadith on zakat obligations (Bukhari 1454, 1450) confirm that zakat is due on productive wealth, but the specific method for trade goods is derived from scholarly consensus based on these principles. (P3, P4) Note: The above is based on the supplied evidence. For complex cases involving partial damage or fluctuating values, consult a knowledgeable scholar.